Weekly Picks 8th May 2023

1. Ambuja Cements Ltd

Counter	AMBUJACEM LTP 400
Call	Buy on dip
Target 1	420
Target 2	440
Stop Loss	375
Time Horizon	2-3 weeks
Notes	Buy-on-dip towards 395 & 385

Ambuja Cements Ltd. is among the leading cement companies in India. It is a member of the Adani Group – the largest and fastest-growing portfolio of diversified, sustainable businesses. Ambuja Cement is known for its hassle-free home-building solutions—India’s leading cement company is known for its hassle-free home-building solutions and sustainable development operations.

Previous Close	388.3	TTM EPS	9.7
52 Week High	598.0	TTM PE	41.3
52 Week Low	315.3	P/B	2.4
Sector PE	38.5	Mkt Cap (Rs. Cr.)	79,535

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• Last week, the counter achieved a weekly closing slightly above 400, the highest in several months.
• In the short to mid-term, if the counter remains above the 370 and 350 levels, it indicates a positive outlook.
• If the counter manages to sustain its position above 400, it may experience short covering and can attempt to achieve 420 levels. There may be a moderate hurdle around the 440 levels.
• In the mid-term, crucial support and resistance levels for the counter are approximately 370 and 440, respectively. The overall outlook remains “Range to positive.

Open Interest Study

(Source: Fisdom research)

• The May 2023 series began with a strong resistance level at around 400, making it a significant hurdle for derivative trading.
• In the previous week, there was a slight decrease in open positions for the 400 Call Option, but it still acts as a hurdle, and there are existing short positions in the market. A further decrease in open positions for the 400 Call Option could result in a quick upward movement in the coming days.
• Investors can consider employing a hedged long option strategy or opt for delivery-based buying in the cash segment for this counter.

F&O Strategy

Scrip	AMBUJACEM LTP 400
Risk	Moderate
Ratio	1:1:2
Bias	Range to pull back
Max Reward Expected	₹41,580
Max Risk Expected	₹30,420

Action	Scrip	QTY	IP	LTP
BUY	AMBUJACEM 25-MAY 390 CE	1800	20.00	20.00
BUY	AMBUJACEM 25-MAY 410 CE	1800	9.40	9.40
SELL	AMBUJACEM 25-MAY 420 CE	3600	6.25	6.25

Invest Now

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2. AU Small Finance Bank Ltd

Counter	AUBANK LTP 674
Call	Buy on dip
Target 1	760
Target 2	840
Stop Loss	Below 600 on close
Time Horizon	4-5 weeks
Notes	Buy-On-Dip towards 660 & 620

In 1996, Au Financiers was established, headquartered in Jaipur, Rajasthan; the retail-focused Non-Banking Finance Company, for two decades, provided speedy and customised financial solutions to rural and urban populations. After bagging the Small Finance Bank (SFB) license in 2015, Au Financiers commenced its journey as an SFB on 19th April 2017. AU Small Finance Bank has a holistic bouquet of banking products to serve all financial needs. For more than 25 years, the institution has helped over 2 million customers achieve their business objectives. AU Small Finance Bank is listed as Fortune India 500 Company.

Previous Close	685.2	TTM EPS	21.4
52 Week High	699.0	TTM PE	31.5
52 Week Low	539.0	P/B	5.9
Sector PE	22.5	Mkt Cap (Rs. Cr.)	44,950

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom research)

• From a technical standpoint, the counter has consolidated for the past three weeks, trading within a range of 640 and 700 levels.
• As long as the counter remains above the 600 level, it maintains a “Range to positive” outlook within this range, and a breakout above the 700 level could generate renewed buying interest. It could drive the counter towards higher targets of 760 and a significant interim target of 840 levels.
• Partial buying can be considered at current levels, and additional long positions can be added if the counter successfully sustains above the 700 level in the coming days.

Open Interest

(Source: Fisdom research)

• The counter is seeing a significant build-up of put options (PE) at the 600-strike price, suggesting a robust short- to mid-term support level.
• Conversely, there is a substantial accumulation of call options (CE) at around the 700 levels, indicating that if the counter manages to sustain above this level, it could trigger short-covering and generate fresh buying interest, potentially driving the counter towards the higher levels in the upcoming days.

F&O Strategy

Scrip	AUBANK LTP 674
Risk	Moderate
Ratio	1:1
Bias	Range to pull back
Max Reward Expected	₹76,350
Max Risk Expected	₹13,650

Action	Scrip	QTY	IP	LTP
BUY	MAY AUBANK FUT	1000	673	673
BUY	MAY AUBANK 680 PE	1000	20.65	20.65

Invest Now

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