Categories: Weekly Pick

Weekly Picks 9th October 2023

1. DLF Ltd

CounterDLF LTP 549.05
CallBuy on dip
Target 1580
Target 2620
Stop Loss510
Time Horizon3-4 weeks
NotesBuy-on-dip towards 542 & 532

Founded in 1946 by Chaudhary Raghvendra Singh, DLF started with the creation of 22 urban colonies in Delhi. In 1985, the company expanded into the then-unknown region of Gurugram, creating exceptional living and working spaces for the new Indian global professionals. Today, DLF is the largest publicly listed real estate company in India, with residential, commercial, and retail properties in 15 states and 24 cities.

Previous Close525.3TTM EPS8.5
52 Week High550.5TTM PE64.9
52 Week Low336.5P/B3.7
Sector PE33.9Mkt Cap (Rs. Cr.)135,820

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • Last week, DLF gave a new multi-year high last week.
  • Technically, the overall structure and indicators suggest a positive trend in the long term.
  • The counter showed a bullish pattern on the weekly chart, suggesting it might be a good idea to buy on dips, expecting the counter to rise in the upcoming weeks.
  • If the counter falls to specific support levels, it could be a good opportunity to buy for potential higher gains in the future.

Open Interest Study

ExpiryCPStrikeOpen Interest
26-Oct-23CE5501362
26-Oct-23CE5401112
26-Oct-23PE5001038
26-Oct-23CE6001026
26-Oct-23CE570773
26-Oct-23CE560730
26-Oct-23PE520696
26-Oct-23CE530620
26-Oct-23PE540509
  • Looking at DLF’s October Option Chain, suggests call option build-up at 550 and 540 strike prices. If the stock manages to stay above these levels in the upcoming sessions, it could lead to short-covering, indicating a potential upward movement.
  • On the downside, Put (PE) option build-up at the 500 and 520 strike prices. This suggests a decent level of support for the stock, indicating potential stability even if the price falls to these levels.

F&O Strategy

ScripDLF LTP 549.05
RiskModerate
Ratio1:1:1
BiasRange to pullback
Max Reward Expected₹24,000
Max Risk Expected₹17,000
ActionScripQuantityIPLTP
BUYDLF OCT FUT1650550550
BUYDLF OCT 545 PE165012.1512.15
SELLDLF OCT 570 PE16506.96.9
Invest Now

2. Interglobe Aviation Ltd

CounterINDIGO LTP 2535
CallBuy on dip
Target 12700
Target 22780
Stop Loss2300
Time Horizon1+ months
NotesBuy-On-Dip towards 2450 & 2350

IndiGo is India’s largest and most preferred passenger airline and amongst the fastest growing airlines in the world.

IndiGo is amongst the fastest-growing low-cost carriers in the world. IndiGo has a simple philosophy: offer fares that are affordable, flights that are on time, and provide a courteous and hassle-free travel experience across its unparalleled network. With its fleet of 320+ aircraft, the airline is operating 1900+ daily flights and connecting 80+ domestic destinations and will soon further grow its footprint to 30+ international destinations.

Previous Close2473.4TTM EPS99.8
52 Week High2745.1TTM PE25.4
52 Week Low1676.0P/B
Sector PE68.23Mkt Cap (Rs. Cr.)97,817

(Source: Moneycontrol, BSE, Fisdom Research)

Technical Outlook

(Source: Fisdom Research)

  • Indigo has a positional “Bullish” structure with crucial trend-line support zone between 2300-2200 levels in short to mid-term time-frame.
  • Technically, the counter can be looked for buying on dips at around mentioned support levels with strict stop loss.
  • On the higher-end the counter can gradually attempt towards higher levels around 2700/2780 & major positional target cum resistance at 3100-3200 levels in months to come.

Open Interest

ExpiryCPStrikeOpen Interest
26-Oct-23CE2600900
26-Oct-23CE2500767
26-Oct-23PE2300692
26-Oct-23PE2400676
26-Oct-23CE2700620
26-Oct-23PE2200446
26-Oct-23CE2400427
26-Oct-23CE2540422
26-Oct-23PE2500375
  • As per option chain study the counter has maximum Call option CE build-up at 2600/2500 strike rates while the maximum PE build-up is at around 2300/2400 PE strike which indicate immediate tight trading range.
  • Overall, as per open interest data dips should attract fresh buying interest for potential higher levels in weeks to come.

F&O Strategy

ScripINDIGO LTP 2535
RiskModerate
Ratio1:1
BiasRange to pullback
Max Reward Expected₹44,000
Max Risk Expected₹16,000
ActionScripQTYIPLTP
BUYINDIGO OCT 2500 CE3008383
SELLINDIGO OCT 2700 CE6001515
Invest Now

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