Weekly Picks 28th August 2023

1. Bharat Electronics Ltd

Counter	BEL LTP 133.4
Call	Buy on dip
Target 1	140
Target 2	160
Stop Loss	120
Time Horizon	3-4 weeks
Notes	Buy-on-dip towards 130 & 125

Bharat Electronics Limited is an Indian Government-owned aerospace and defence electronics company. It primarily manufactures advanced electronic products for ground and aerospace applications. BEL is one of nine PSUs under the Ministry of Defence of India.

Previous Close	134.4	TTM EPS	4.3
52 Week High	137.9	TTM PE	30.9
52 Week Low	87.0	P/B	2.6
Sector PE	44.6	Mkt Cap (Rs. Cr.)	97,512

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

The counter is creating a pattern of “Higher Lows & Higher Highs,” indicating a strong upward trend.
If the counter remains above 120 levels in the short to medium term, outlook is ‘Accumulate’. This could lead to potential gains at around 140 in the near future, followed by higher targets of 160 and 180 in the medium to long term.

Open Interest Study

According to the August option chain analysis, there is a “tug-of-war’ at 130 level, while Call Options (CE) is seen at around 135 and 140 strike rates, which are acting as near-term resistance levels for the stock.
The counter is currently in a consolidation phase with a positive outlook within the range of 120 and 140. This is expected to hold in the short to medium term

F&O Strategy

Scrip	BEL 133.4
Risk	Moderate
Ratio	1:1
Bias	Holding above 130 – “Range to up”
Max Reward Expected	₹33,202
Max Risk Expected	₹ 24,795

Action	Scrip	Lot Size	IP	LTP
BUY	BEL SEP 130 CE	5700	7.6	7.6
SELL	BEL SEP 140 CE	5700	3.25	3.25

Invest Now

2. Federal Bank Ltd

Counter	FEDERALBANK LTP 140.7
Call	Buy on dip
Target 1	160
Target 2	180
Stop Loss	125
Time Horizon	1-2 months
Notes	Buy-On-Dip towards 138 & 130

Federal Bank is the preferred Personal, NRI and Business banking partner for a growing expanse of customers across India, in both urban and rural areas. The Bank is driven by the quest to be one of the most admired banking institutions in the country. This is just one manifestation of the Bank’s powerful ‘Digital at the Fore, Human at the Core’ proposition. Redefining human experience, the digital way has been a constant goal.

Previous Close	140.7	TTM EPS	14.5
52 Week High	143.8	TTM PE	9.7
52 Week Low	105.2	P/B	1.5
Sector PE	23.9	Mkt Cap (Rs. Cr.)	33,054

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

Over the last five years, the stock has formed a positive pattern known as the “Inverse Head & Shoulder pattern” on a longer-term basis.
In the past ten months, the stock experienced a significant breakout above the 120 level, a key point called the “Neckline,” and then retraced to test this level again.
The stock appears poised to achieve a higher target of 180 or more in the coming months based on its current formation.
In the short to medium term, the initial target could be around 160 levels.
For the next few weeks to months, from a technical standpoint, consider accumulating the counter as long as it stays above the immediate support range of 125-120. This could lead to potential gains reaching first 160 and then a major target of 180 levels in the months ahead.

Open Interest

Based on the August Option Chain analysis, there’s significant concentration of options around the 140 to 150 Strike Rates, which suggests a resistance level.
The key level where there’s a bit of a struggle is at 135.
If the stock holds above 135, it might shift from a sideways range to an upward movement, which could make a “Hedged Long Option Strategy” worth considering.

F&O Strategy

Scrip	FEDERALBANK LTP 140.7
Risk	Moderate
Ratio	1:1
Bias	Holding above 135 – “Range to up”
Max Reward Expected	₹31,250
Max Risk Expected	₹18,750

Action	Scrip	QTY	IP	LTP
BUY	FEDERALBANK SEP 140 CE	5000	6.05	6.05
SELL	FEDERALBANK AUG 150 CE	5000	2.3	2.3

Invest Now

Disclaimer: This document is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. If you have received the publication in error please notify the sender immediately. If you are not the named addressee, you should not disseminate, distribute or copy this document. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. This document has no contractual value and is not and should not be construed as advice or as an offer or the solicitation of an offer or a recommendation to take action in consonance in any jurisdiction. Finwizard Technology Private Limited (“Fisdom”) makes no guarantee, representation or warranty and accepts no responsibility or liability for the accuracy or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will Fisdom be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document, even if you advise us of the possibility of such damages, losses or expenses. Fisdom does not undertake any obligation to issue any further publications or update the contents of this document. The information stated and/or opinion(s) expressed herein are expressed solely as general commentary for general information purposes only and do not constitute advice, solicitation or recommendation to act upon thereof. Fisdom does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. Fisdom may have issued other similar documents that are inconsistent with and reach different conclusion from the information presented in this document. The relevant offering documents should be read for further details. You should make such researches/inspections/inquiries as it deems necessary to arrive at an independent evaluation of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks involved. Fisdom makes no representations that the offerings mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the offer discussed will not afford the protection offered by the local regulatory regime in any other country. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. The historical performance presented in this document is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for future or specific investments. The relevant product documents should be read for further details. Fisdom does not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at anytime.

Fisdom Research