Weekly Picks 3rd April 2023

1. Tech Mahindra Ltd.

Tech Mahindra is a USD 6+ billion organization with 157,000+ professionals across 90 countries helping 1290 global customers, including Fortune 500 companies. It is focused on leveraging next-generation technologies, including 5G, Metaverse, Blockchain, Quantum Computing, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers. It is the only Indian company in the world to receive the HRH The Prince of Wales’ Terra Carta Seal for its commitment to creating a sustainable future. It is the fastest growing brand globally in ‘brand value rank’ and amongst the top 7 IT brands globally in brand strength with an AA+ rating.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• Tech Mahindra has been holding well above 950 levels since Jun-2022.
• The counter in the last months has been in consolidation with “High Lows” formation, indicating potential consolidation break-out on the higher-end.
• On an immediate basis, the counter holding above the 1000-950 zone remains an “Accumulate” outlook.
• On the higher-end immediate major hurdle zone is between 1200-1250, which, once held, can witness fresh positional buying interest.

Open Interest Study

(Source: Fisdom research)

• The counter has not witnessed any substantial OI build-up in the last many weeks of price correction.
• The maximum PE build-up is at around 1000 levels, indicating decent support for the April series.

F&O Strategy

2. ICICI Bank Ltd.

ICICI Bank is India’s largest private sector bank with a network of 5000+ branches and 13000+ ATMs across India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through various delivery channels and through its specialised subsidiaries in investment banking, life and non-life insurance, venture capital and asset management.

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

• ICICI Bank has been one of the outperforming banks in the Banking Segment in the last few quarters.
• The counter witnessed a sharp bounce from lows of 800 in Feb-23 & since then, is holding firm despite high volatility in Indices.
• Last week the counter formed a “Bullish Candle” on the weekly chart indicating a potential breakout in weeks to come.
• The counter can be looked for proportionate buying on dips towards 870/ 850 for the immediate 900 & major 940-960 zone in days to come.

Open Interest

(Source: Fisdom Research)

• Initially, the Open Interest indicates maximum PE build-up at around 850 & 870 levels, which can be considered support levels.
• In contrast, the significant resistance cum CE build-up is witnessed as 900 strike price, which can be a substantial immediate hurdle.

F&O Strategy

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