Weekly Picks 30th October 2023

1. Canara Bank Ltd

Counter	CANBK LTP 380.7
Call	Buy on dip
Target 1	400
Target 2	415
Stop Loss	350 on close
Time Horizon	4-5 weeks
Notes	Buy-on-dip towards 370 & 360

Over the years, the Bank has been scaling up its market position to emerge as a major Financial Conglomerate with as many as thirteen subsidiaries/sponsored institutions in India and abroad. As at June 2023, Canara Bank services over 11.04 crore customers through a network of 9,653 branches and 12,114 ATMs/Recycler spread across all Indian states and Union Territories.

Previous Close	359.35	TTM EPS	70.6
52 Week High	387.8	TTM PE	5.4
52 Week Low	221.0	P/B	1.1
Sector PE	10.7	Mkt Cap (Rs. Cr.)	69,082

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

Canbk experienced a consolidation break-out above 320 in Jul-2023 and reached a high of 387 post-consolidation.
The stock subsequently dipped to re-test the support level of 340 due to profit-taking in the market.
It rebounded strongly from the lows following positive fundamental quarterly results.
From a technical perspective, the stock remains a “Buy-On-Dip” above 340 levels, with the potential to reach higher levels around 440 in the coming months.
On a short-term time-frame, if the stock dips towards 365 and 350 levels, it is advisable to maintain a stop below 340 levels.

Open Interest Study

Expiry	CP	Strike	Open Interest
30-Nov-23	CE	400	1534
30-Nov-23	CE	380	1219
30-Nov-23	PE	350	1026
30-Nov-23	PE	360	955
30-Nov-23	CE	390	941
30-Nov-23	PE	370	870
30-Nov-23	PE	380	808
30-Nov-23	PE	330	708
30-Nov-23	PE	340	683

The Open Interest Chain study for the November series reveals a significant build-up of Call Options at the 400 and 380 Strike Rates.
Conversely, there is a substantial build-up of Put Options at the 350 and 360 Strike Rates, suggesting a buy-on-dip sentiment towards these support levels.
Fresh buying, coupled with short-covering, can be anticipated only if the stock manages to sustain above the critical 400 levels.

F&O Strategy

Scrip	CANBK LTP 380.7
Risk	Moderate
Ratio	1:2
Bias	Range to pullback
Max Reward Expected	₹84,375
Max Risk Expected	₹24,000

Action	Scrip	Quantity	Entry Price	LTP
BUY	CANBANK NOV 380 CE	2700	13.75	13.75
SELL	CANBANK NOV 420 CE	5400	2.5	2.5

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2. Colgate-Palmolive (India) Ltd

Counter	COLPAL LTP 2079.85
Call	Buy on dip
Target 1	2120
Target 2	2180
Stop Loss	1970
Time Horizon	4-5 weeks
Notes	Buy-On-Dip towards 2040 & 2000

From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream, Colgate-Palmolive (India), now in its eighth decade, has one of the widest distribution networks in India. Today, the company is the market leader in the country in Oral Care that seeks to deliver sustainable, profitable growth, superior shareholder returns, and provide its people with an innovative and inclusive work environment.

Previous Close	2034.4	TTM EPS	40.8
52 Week High	2129.4	TTM PE	50.9
52 Week Low	1434.6	P/B	32.9
Sector PE	59.8	Mkt Cap (Rs. Cr.)	56,586

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

In July 2023, the counter experienced significant buying interest, leading to a consolidation phase afterward.
Last week, the counter saw decent buying interest from its lows, ending the week marginally in the red.
In the short term, the technical outlook suggests a “Buy-On-Dip” strategy within the ongoing consolidation range of 1900 to 2100.
On the higher end, the immediate target and hurdle are around 2120 and 2180. A breakout above this consolidation range can potentially lead to higher targets in the coming months.

Open Interest

Expiry	CP	Strike	Open Interest
30-Nov-23	CE	2100	433
30-Nov-23	CE	2200	387
30-Nov-23	PE	2000	362
30-Nov-23	CE	2300	211
30-Nov-23	CE	2000	158
30-Nov-23	PE	1900	141
30-Nov-23	PE	1850	103
30-Nov-23	CE	2250	97
30-Nov-23	CE	2050	92

In the November Option Open Interest Chain, there is a significant build-up of Call Options at the 2100 and 2200 Strike Rates. Simultaneously, the maximum Put Options build-up is observed at the 2000 and 1900 Strike Rates, indicating these levels as important and crucial support for the stock.

F&O Strategy

Scrip	COLPAL LTP 2079.85
Risk	Moderate
Ratio	1:2
Bias	Range to pullback
Max Reward Expected	₹30,275
Max Risk Expected	₹4,725

Action	Scrip	QTY	Entry Price	LTP
BUY	COLPAL NOV 2100 CE	350	32	32
SELL	COLPAL NOV 2200 CE	700	9.25	9.25

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