5 stocks with long buildup: AU SFB, Marico, TVS Motor may surge up to 22%

Aditya Birla Fashion, AU Small Finance Bank, Metropolis, Marico and TVS Motor have seen steady rise in stock price, backed by rise in open interest, thus indicating long buildup at these counters in t

Equity market has witnessed wild swings in the last four trading sessions post the Lok Sabha election. The benchmark indices, the Sensex and the Nifty, tumbled over 8 per cent after scaling record highs at the start of the week, but soon managed to recoup most of their losses.

However, select stocks in F&O (futures & options) space, have managed to withstand this volatility, and log consistent gains alongside a rise in open interest (read positions) - thus implying long buildup at these counters.

Here's a trading guide based on the technical charts on 5 stocks with long buildup in the June series.

Aditya Birla Fashion & Retail

Last close: Rs 322

Upside Potential: 14.9%

Support: Rs 304; Rs 290

Resistance: Rs 355

Aditya Birla Fashion & Retail stock has gained 13.3 per cent so far this week, while the open interest has risen by 7.4 per cent.

Technically, the stock is presently trading above the higher-end of the Bollinger Bands both on the daily and weekly charts. The bias for the stock is likely to remain upbeat as long as the stock sustains above Rs 304. Major support for the stock stands at Rs 290. CLICK HERE FOR THE CHART

On the upside, Aditya Birla Fashion & Retail stock can rally to Rs 370 levels, with interim resistance seen around its previous peak at Rs 355.

AU Small Finance Bank (AU SFB)

Last close: Rs 661

Upside Potential: 22.5%

Support: Rs 635; Rs 623

Resistance: Rs 677; Rs 690

AU SFB has logged a 2.8 per cent gain in the last four days, with its open interest rising by 31.5 per cent. 

AU SFB stock is seen testing its 200-DMA (Daily Moving Average), which stands at Rs 677, for the first time since January 25, 2024. The stock is now trading above its 100-DMA. The price-to-moving averages action indicates a likely favourable trend as long as the stock will be able to sustain above Rs 635 - Rs 623 support zone. CLICK HERE FOR THE CHART

On the upside, the stock break and sustained trade above the 200-DMA can trigger a rally towards Rs 810 levels. Interim resistance can be expected around Rs 690.

Metropolis Healthcare

Last close: Rs 1,906

Upside Potential: 23.3%

Support: Rs 1,900; Rs 1,750

Resistance: Rs 2,050

Metropolis Healthcare stock has gained 5.7 per cent since the start of the week, whereas the open interest has galloped by 67.8 per cent. In the process, the stock is seen holding above its 200-DMA for the first-time ever.  CLICK HERE FOR THE CHART

The stock is likely to trade with a bullish bias, as long as it holds above Rs 1,900 levels, below which the next key support stands at Rs 1,750. On the upside, the stock needs to break above Rs 2,050 for a sustained rally towards Rs 2,350 levels.

Marico

Last close: Rs 595

Upside Potential: 10-15%

Support: Rs 575

Marico stock has rallied 9.7 per cent as of Thursday, with 16.8 per cent long buildup. The stock at present is seen trading above the higher-end of the Bollinger Bands on the daily chart, suggesting a positive bias above Rs 575 levels. CLICK HERE FOR THE CHART

The stock is trading at all-time highs, the momentum driven rally could yield another 10-15 per cent gain in the near-term, thus indicating a potential upside target of Rs 655 - Rs 684.

TVS Motor

Last close: Rs 2,398

Upside Potential: 12.5%

Support: Rs 2,100

TVS Motors stock has risen by 7.2 per cent, backed by 19.7 per cent long additions in the futures positions. The stock has witnessed a phenomenal run since the start of FY23, and has zoomed as much as 293 per cent in the last 26 months. 

Momentum oscillators on the daily and weekly charts have given fresh positive divergence. Hence, the stock may continue to scale newer heights in the coming trading sessions. On the upside, the stock may rally to Rs 2,600 - Rs 2,700 levels. Short-term, bias for the stock is likely to remain favourable as long as Rs 2,100 holds. CLICK HERE FOR THE CHART