BULLISH BETS
Punjab National Bank
CMP: Rs 104.7
READING: 48% increase in OI in November futures with a 3.5% price gain, indicating bullish build-up.
RECOMMENDATION: “The shift in stock sentiment was observed after the company reported a net profi t jump of 145% and asset quality improvement,’’ said Rajesh Palviya, head of technical and derivatives research at Axis Securities. Traders can buy in the range of Rs 105-103 with a stop loss of Rs 100 for a target of Rs 110-112, he said.
Syngene International
CMP: Rs 898.4 READING: 31% increase in OI in November futures with a 4.3% gain in price, indicating bullish buildup.
RECOMMENDATION: ‘The improvement was marked by a recovery in its largest segment — Discovery Services — as largeand mid-sized biopharma clients are looking for alternatives to China, which, in the last few quarters, were impacted by weak biotech funding,’’ said Palviya. He recommends a Buy in the range of Rs 900-890 with a stop loss of Rs 870 for a target of Rs 950-960.
Page Industries
CMP: Rs 48,003
READING: 33.3% decline in OI in November futures with 10.6% increase in price implies bullish bias
RECOMMENDATION: “The sharp drop in open interest suggests signifi cant unwinding of short positions, indicating that it may soon break past its all-time highs,” said Ajit Mishra, senior vice president of research at Religare Broking. He suggests traders buy Page Industries November Futures in the range of `47,500-48,000 with stop loss at Rs 46,250 for the potential target of Rs 53,500.
The Indian Hotels Company
CMP: Rs 732.9
READING: Addition of 5.35% cumulative OI with stock price gain of 6.59% this series implies bullish bets
RECOMMENDATION: “As the stock is trading at all-time high levels, all the moving averages and momentum-based indicators suggest strong bullish momentum,” said Sudeep Shah, head of technical and derivatives research at SBICAP Securities. He recommends accumulating the stock in the zone of Rs 725-735 with a stop loss of Rs 705 as it may test Rs 770-790.
Apollo Hospitals Enterprise
CMP: Rs 7,421.4
READING: 12% rise in OI in futures with stock price up 5.5%, indicates fresh bullish positions
RECOMMENDATION: After the company’s Q2 net profi t exceeded estimates, the stock broke out. “As long as it holds above Rs 7,200, it is expected to extend the move towards Rs 7,700-8,000, with support at Rs 7,100 levels,” said Chandan Taparia, head of derivatives research at Motilal Oswal Financial Services.
BEARISH BETS
IndiaMART InterMESH
CMP: Rs 2,374.3
READING: 55% increase in OI in November futures with a 7% decline in price, implying bearish build-up.
RECOMMENDATION: The open interest for the stock increased to 13,17,900 from 8,50,800, with prices falling from Rs 2,567 to Rs 2,383. Palviya recommends selling in the range of Rs 2,400-2,420 with a stop loss of Rs 2,490 for a target of Rs 2,270-2,250.
Godrej Properties
CMP: Rs 2,685.2
READING: Addition of 3.27% cumulative OI with a stock price drop of 6.85% in November, implying bearish build-up.
RECOMMENDATION: On Friday, the stock slipped below its 200-day Exponential Moving Average (EMA) for the first time after April 13, 2023, which is a bearish sign, said Shah. He recommends traders sell the stock at Rs 2,680-2,700 level with a stop loss of Rs 2,770 as it could fall to Rs 2,550 and even Rs 2,480.
Aarti Industries
CMP: Rs 474.4
READING: 25% rise in OI in November series with 9.8% decline in price indicate bearish build-up
RECOMMENDATION: The stock made its 52-week low on Friday after company’s Q2 net profit fell 43%. “Aarti has been trading with a bearish bias for the past three months and it dropped around 8% in the last trading session with a sharp increase in open interest, just ahead of its earnings release,” said Mishra. He said traders could sell Aarti Nov futures at Rs 475-480 with stop loss at Rs 504 for the potential target of Rs 425.