1. Axis Bank Ltd
| Counter | AXISBANK LTP 926.95 |
| Call | Buy on dip |
| Target 1 | 975 |
| Target 2 | 1050 |
| Stop Loss | 875 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 920 & 890 |
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The Bank has a large footprint of 4,903 domestic branches (including extension counters) with 15,953 ATMs & cash recyclers spread across the country as on 31st March 2023. The Bank has 6 Axis Virtual Centres with over 1,500 Virtual Relationship Managers as on 31st March 2023.
| Previous Close | 921.0 | TTM EPS | 35.1 |
| 52 Week High | 970.0 | TTM PE | 26.4 |
| 52 Week Low | 618.3 | P/B | 2.4 |
| Sector PE | 21.4 | Mkt Cap (Rs. Cr.) | 285,392 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- The counter has recently broken out above the 900 level after trading in a range for the past three months. It ended last week at its highest price.
- Axis Bank is trading above the range of 900-875, has a “Buy-on-dip” outlook for potential gains to the levels of 975 and 1050 in the coming months.
- In the short term, investors can consider buying the stock at the current market price or during price declines towards the 900 level. It is recommended to set a stop-loss below 875 on a weekly closing basis to protect against potential losses while aiming for the mentioned higher price targets.
Open Interest Study
(Source: Fisdom research)
- There is a significant increase in the number of put options (PE) for Axis Bank expiring in June at the 900 price level. At the same time, there is a significant increase in the number of call options (CE) at the 950 price level. This suggests that there is a potential trading range between 900 and 950 for Axis Bank, and there is a positive expectation for the stock price to move higher within this range
F&O Strategy
| Scrip | AXISBANK LTP 926.95 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹27,300 |
| Max Risk Expected | ₹20,700 |
| Action | Scrip | QTY | IP | LTP |
| BUY | AXISBANK JUN 920 CE | 1200 | 25.25 | 25.25 |
| SELL | AXISBANK JUN 960 CE | 1200 | 8 | 8 |
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2. Tata Consumer Products Ltd
| Counter | TATACONSUM LTP 789.75 |
| Call | Buy on dip |
| Target 1 | 840 |
| Target 2 | 880 |
| Stop Loss | 740 |
| Time Horizon | 2-3 weeks |
| Notes | Buy-On-Dip towards 785 & 765 |
Today TGBL, renamed to Tata Consumer Products, is home to well-loved brands – Tata Tea, Tetley, Tata Salt, Eight O’Clock Coffee, Himalayan Water and emerging brands like Tata Sampann, Tata Soulfull, Tata Gluco Plus and Tata Water Plus. The offerings are rooted in the core Tata values of responsibility and welfare of the community. The brands are present in over 40 countries with a diverse workforce spread across the world.
| Previous Close | 780.3 | TTM EPS | 12.9 |
| 52 Week High | 861.1 | TTM PE | 60.9 |
| 52 Week Low | 686.6 | P/B | 4.5 |
| Sector PE | 61.7 | Mkt Cap (Rs. Cr.) | 73,364 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- Based on the “Harmonic Price” study, Tata Consumer has a “Range to positive” outlook above 740 levels.
- If the stock moves higher, it has the potential to reach the immediate major target of 840 levels.
- A break-out above the falling trend-line, which may happen above 840 levels, could lead to even higher targets of 880 and a major long-term target of 960 levels.
- In the short term, the technical outlook in “Buy-on-dip” towards 760 and 740 levels, with a stop-loss below 740 on a weekly closing basis. The interim target on the higher end is around 840 levels.
Open Interest
(Source: Fisdom research)
- In June, there is a high amount of open interest (a measure of options contracts) for put options at the 780 strike price, and lower levels at 770 and 760. On the other hand, for call options, there is a significant amount of open interest at the 800 strike price. If the stock price stays above 800, it may lead to short-covering and new buying interest in the market.
F&O Strategy
| Scrip | TATACONSUM LTP 789.75 |
| Risk | Moderate |
| Ratio | 1:2 |
| Bias | Range to pull back |
| Max Reward Expected | ₹40,365 |
| Max Risk Expected | ₹13,600 |
| Action | Scrip | QTY | IP | LTP |
| BUY | TATACONSUM JUN 780 CE | 900 | 20.15 | 20.15 |
| SELL | TATACONSUM JUN 840 CE | 1800 | 2.5 | 2.5 |
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