Bharat Heavy Electricals Ltd
1. Bharat Heavy Electricals Ltd
| Counter | BHEL LTP83.09 |
| Call | Buy on dip |
| Target 1 | 94 |
| Target 2 | 100 |
| Stop Loss | 75 or 68 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 82 & 78 |
BHEL is one of the largest engineering and manufacturing companies of its kind in India engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of economy.
| Previous Close | 82.0 | TTM EPS | 1.4 |
| 52 Week High | 91.6 | TTM PE | 60.7 |
| 52 Week Low | 41.4 | P/B | 1.1 |
| Sector PE | 21.5 | Mkt Cap (Rs. Cr.) | 28,970 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- As of June 2021, BHEL’s share price reached a high of 80, and since then, the counter has entered “Price & Time” consolidation.
- Based on current trends and price analysis, it appears that BHEL is poised for an upward trend in the coming days.
- In April 2023, the counter showed a “Bullish Engulfing” candlestick pattern on the monthly chart and closed just below the 80 mark.
- Over the past two months, the stock has established a solid base above 80 and is currently maintaining above 68. The stock is expected to initially reach 100, followed by significant milestones of 110 and then 116 in the next few months.
Open Interest Study
(Source: Fisdom research)
- The most significant concentration of Call Options (CE) for the June series is at the 90 strike price, closely followed by the 85 CE.
- Conversely, the majority of Put Options (PE) are built up at the 80 strike price. This level is also a critical battleground between buyers (“Bulls”) and sellers (“Bears”) for the upcoming months.
- If the trading price stays above 80, it indicates a positive trend and could mean that buyers or “Bulls” may have an advantage according to price study.
F&O Strategy
| Scrip | BHEL LTP 83.09 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pull back |
| Max Reward Expected | ₹79,800 |
| Max Risk Expected | ₹35,700 |
| Action | Scrip | QTY | IP | LTP |
| BUY | BHEL JUN FUT | 10500 | 83.75 | 83.75 |
| SELL | BHEL JUN 83 PE | 10500 | 2.65 | 2.65 |
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2. Ambuja Cements Ltd
| Counter | AMBUJACEM LTP 437.75 |
| Call | Buy on dip |
| Target 1 | 472 |
| Target 2 | 484 & 505 |
| Stop Loss | 418 or 400 |
| Time Horizon | 4-5 weeks |
| Notes | Buy-On-Dip towards 432 & 422 |
Ambuja Cement was founded in 1983 by Narotam Sekhsaria and Suresh Neotia, two traders with very little knowledge of cement or manufacturing. What made up for this lack was their farsightedness: Anticipating that cement would be a critical resource for a developing economy like India, they invested in a state-of-the-art cement plant in Gujarat and went on to build a trusted cement brand that has become synonymous with quality and strength.
| Previous Close | 429.2 | TTM EPS | 9.7 |
| 52 Week High | 598.0 | TTM PE | 45.2 |
| 52 Week Low | 315.3 | P/B | 2.7 |
| Sector PE | 45.1 | Mkt Cap (Rs. Cr.) | 86,981 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- Ambuja Cement’s stock price has risen from a low of 301 in February 2023 to a high of 440 last week.
- The 400 level, which was a major resistance point for the last four months, has now become a significant and critical support level for potential increases in price.
- If the price stays above 400, it is likely to remain stable or even increase. If it holds above 440, this could stimulate new buying interest, pushing the price towards 480 and the major resistance level of 505.
- For the coming weeks, a cautious yet optimistic approach is suggested for this stock. If the price remains above 420, the trend for the coming week could be rangebound to upward.
Open Interest
(Source: Fisdom Research)
- According to an analysis of Ambuja Cement’s option chain, there’s solid support at 400 and next at 430 levels, as shown by the accumulation of Put Options. However, the largest concentration of Call Options is at 450 and 440, which are immediate challenges.
- If the counter trades above 440/450, it could trigger a mix of short covering and new buying interest in the upcoming weeks.
- For the coming week, keep a close eye on the 430 and 450 levels as they will be crucial.
F&O Strategy
| Scrip | AMBUJACEM LTP 437.75 |
| Risk | Moderate |
| Ratio | 1:2 |
| Bias | Range to pull back |
| Max Reward Expected | ₹57,330 |
| Max Risk Expected | ₹14,670 |
| Action | Scrip | QTY | IP | LTP |
| BUY | AMBUJACEM JUN 440 CE | 1800 | 14.55 | 14.55 |
| SELL | AMBUJACEM JUN 480 CE | 3600 | 3.2 | 3.2 |
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