Weekly Picks 28th November 2023

1. HDFCBANK

Counter	HDFCBANK LTP 1532.05
Call	Buy on dip
Target 1	1560
Target 2	1600
Stop Loss	1480 on close
Time Horizon	1 + months
Notes	Buy-on-dip towards 1515 & 1495

The Housing Development Finance Corporation Limited or HDFC Ltd was among the first financial institutions in India to receive an “in principle” approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. This was done as part of RBI’s policy for liberalisation of the Indian banking industry in 1994

Previous Close	1521.3	TTM EPS	71.8
52 Week High	1757.5	TTM PE	21.4
52 Week Low	1460.3	P/B	4.0
Sector PE	23.5	Mkt Cap (Rs. Cr.)	11,62,828

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

HDFC Bank ended last week on a positive note, reaching its five-week high above the 1530 levels.
However, the counter has underperformed the Bank Index this year, experiencing a decline of -4.27%. A potential pullback in the upcoming weeks might help bridge this performance gap.
Immediate support for the counter is anticipated around the 1480 levels, while a significant interim resistance is expected at around 1610 levels, where the possibility of “Selling Pressure” cannot be disregarded.
In summary, for the approaching week, looking for dips towards support levels could present opportunities for initiating fresh trading long strategies for the December series.

Open Interest Study

Expiry	CP	Strike	Open Interest
30 Nov 2023	CE	1500	10971
30 Nov 2023	PE	1500	7360
30 Nov 2023	CE	1600	6079
30 Nov 2023	CE	1550	5077
30 Nov 2023	PE	1400	5011
30 Nov 2023	CE	1520	4730
30 Nov 2023	CE	1540	4080
30 Nov 2023	PE	1470	2742
30 Nov 2023	PE	1520	2727

In the November series, HDFC Bank Options show the highest Call Option build-up at 1500 and 1600 Strike Rates, with the maximum Put Option build-up at 1500 and 1400 Strike Rates.
In general, the 1500 Strike Rates appear to be a battleground between Bulls and Bears. Dips towards the 1500 levels might present opportunities for initiating fresh hedged trading long strategies for December.

F&O Strategy

Scrip	HDFCBANK LTP 1532.05
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	₹18,040
Max Risk Expected	₹15,000

Action	Scrip	Quantity	Entri Price	LTP
BUY	HDFCBANK 28-DEC 1520 CE	550	37	37
SELL	HDFCBANK 28-DEC 1580 CE	550	9.8	9.8

Invest Now

2. HAL

Counter	HAL LTP 2,241.95
Call	Buy on dip
Target 1	2320
Target 2	2420
Stop Loss	2100
Time Horizon	1 to 2 Months
Notes	Buy-On-Dip towards 2200 & 2175

Hindustan Aeronautics Ltd (HAL) is an aerospace and defense company, owned by the government of India. The company develops, designs, manufactures, and supplies aircraft, helicopters, avionics, and communications equipment for military and civil markets.

Previous Close	2,146.3	TTM EPS	90.3
52 Week High	4,170.0	TTM PE	24.8
52 Week Low	1,767.8	P/B	6.4
Sector PE	34.6	Mkt Cap (Rs. Cr.)	149,825

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

HAL signaled a consolidation break-out above the 2100 levels in the second week of November 23. Following the consolidation, it showed a fresh upward movement last week.
Ending the week on a strong note, the counter demonstrated a more than 5% increase, suggesting the potential for further upward movement in the upcoming weeks.
Expectations point towards a rise to levels beyond 2400 in the next few weeks, with a “Buy-On-Dip” perspective recommended above 2080 in the short-term timeframe.
In the approaching week, any declines towards 2200 and below could offer a more favorable risk-reward ratio for attaining higher levels in the subsequent weeks

Open Interest

Expiry	CP	Strike	Open Interest
30 Nov 2023	CE	2250	1700
30 Nov 2023	PE	2100	1548
30 Nov 2023	CE	2300	1502
30 Nov 2023	PE	2150	1487
30 Nov 2023	CE	2400	1396
30 Nov 2023	PE	2000	1329
30 Nov 2023	CE	2100	1231
30 Nov 2023	CE	2500	1136
30 Nov 2023	PE	1900	1129

In the HAL Nov Option Chain, there’s a maximum Put Option build-up observed at the 2100 and 2150 Strikes, expected to serve as Support levels. Simultaneously, the maximum Call Option build-up is noted at the 2250 and 2300 Strikes.
Overall, the range between 2100 and 2300 appears to establish an initial trading band, suggesting a Buy-On-Dip perspective for the upcoming weeks.

F&O Strategy

Scrip	HAL LTP 2,241.95
Risk	Moderate
Ratio	1:1
Bias	Range to pullback
Max Reward Expected	₹36,000
Max Risk Expected	₹23,400

Action	Scrip	QTY	Entri Price	LTP
BUY	28-DEC HAL 2200 CE	300	115	115
SELL	28-DEC HAL 2400 CE	300	37	37

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