Weekly Picks 29th May 2023

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

Invest Now

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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

Invest Now

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