F&O Calls: Top 3 picks from SMC Global

Nifty is likely to resume its uptrend and 8650 level is possible in coming days

Nifty Futures
Last close:  8,508
Target-8,650

From past three sessions Nifty Futures traded in a narrow range between 8,530 - 8,420, but at same time the put/call ratio of Open Interest  has shoot up to 1.09 from 0.89 on account of put writing. Today also, there is addition of 28 lakh shares in OTM puts. On other side there is no writing in OTM calls. The option concentration suggests that Nifty is likely to resume its uptrend and level of 8,650 is possible in coming days.

AMBUJA CEMENT (LONG)
Last close: Rs 231.30
Target: Rs 240

After last week’s panic bottom, the stock has seen long accumulation. On Wednesday also, more than 8% shares added in open interest.  A bullish breakout with rise in volume suggests the short term trend will continue, hence buy with stop loss of 226.

EXIDE INDS (LONG)
Last close: Rs 159.55
Target: Rs 169

Exide has seen bullish breakout few days back and now on retracement it getting support at breakout level of 160. Price pattern suggests that trend is likely to continue. Hence we suggest buy on dip with keeping 156.50 as protective stop loss.

LUPIN (LONG)
Last close: Rs 1,801.10
Target: Rs 1,855

On Wednesday, Lupin bounced on aggressive short covering, where price moved up by 2.5% and open interest decreased. In option front, option writes also covered the 1800 strike Aug Call option. Price pattern also suggests momentum is likely to continue. Hence we recommend to buy Lupin with stop loss of 1777.

 

All discussed  price levels are Future Price levels.

Disclaimer: These calls are generated on the basis of derivative data and technical analysis. I personally don’t have any position in discussed stocks but as brokerage house, our proprietary desk and clients may have exposure.

Vineet Sood is an Assisiant Vice President (Derivative Research) with SMC Global