Buy Watchlist: ABB, Dixon, IEX among 4 stocks with long buildup in F&O

F&O stock outlook: Technical charts suggest that OFSS and Indian Energy Exchange can rally up to 19 per cent; here are the key support and resistance levels.

The NSE Nifty 50 index has gained 0.9 per cent in the last four straight days as trading sentiment remained upbeat on hopes of continuity in reforms during Modi 3.0 tenure.

At the same, the Nifty June futures advanced almost 0.9 per cent in the same period, trading at par with the spot Nifty in the last two sessions. The open interest was down by 1.3 per cent, mainly on account of short-covering by foreign institutional investors (FIIs). The FIIs net longs index futures rose from 34.25 per cent to 47.50 per cent as of June 14.

Meanwhile, out of the 182 stocks traded in the futures & options (F&O) segment, five derivatives stocks namely - OFSS, ABB India, Dixon Technologies, Indian Energy Exchange (IEX) and ICICI Prudential Life - have seen addition of notable long positions in the recent trading days. 

The counter is said to have witnessed a long buildup when the underlying price of the stock or index rises in line with a corresponding increase in the open interest (read open positions) in the derivatives segment.

Here's a quick technical analysis on these five stocks, identifying potential upside alongside support and resistance levels in the near-term.

OFSS

Last close: Rs 9,539

Upside Potential: 18.9%

Support: Rs 9,300; Rs 9,000

Resistance: Rs 10,280; Rs 10,810

OFSS stock futures witnessed a price gain of 13.1 per cent alongside a 44.3 per cent rise in open interest (OI), indicating substantial long buildup at the counter. 

Technically, the stock is trading above the higher-end of the Bollinger Bands on the daily scale. The near-term trend is likely to remain bullish as long as the stock holds above Rs 9,300; below which the next major support stands at Rs 9,000-mark. CLICK HERE FOR THE CHART

The quarterly Fibonacci chart suggests an upside target of Rs 11,340, with interim resistance seen at Rs 10,280 and Rs 10,810.

Dixon Technologies

Last close: Rs 11,275

Upside Potential: 5.5%

Support: Rs 11,050

Resistance: Rs 11,730; Rs 11,550

Dixon Technologies stock rose 11.4 per cent backed by a 12.9 per cent jump in OI in the last four trading sessions.  

Dixon Technologies stock is likely to trade with a positive bias as long as it holds above Rs 11,050 levels. The stock is trading in uncharted territory and may rally up to Rs 11,900 levels in the near-term. Interim resistance for the stock can be expected around Rs 11,550 and Rs 11,730. CLICK HERE FOR THE CHART

Indian Energy Exchange (IEX)

Last close: Rs 180

Upside Potential: 16.7%

Support: Rs 181; Rs 176

Resistance: Rs 193

IEX stock was up 8.7 per cent in the last four days, with a 10.4 per cent rise in OI. The stock is likely to trade with a positive bias as long as it sustains above Rs 181 levels, below which the next key support stands at Rs 176. CLICK HERE FOR THE CHART 

On the upside, the stock can rally to Rs 210 levels, with interim resistance seen at Rs 193.

ABB India

Last close: Rs 9,020

Support: Rs 8,310; Rs 8,000

ABB India stock has surged 11.7 per cent backed with an 8.1 per cent rise in OI. The overall bias for the stock is likely to remain favourable as long as it sustains above Rs 8,000-mark. The 20-DMA (Daily Moving Average) at Rs 8,310 levels can act as an immediate support. On the upside, the stock needs to sustain above Rs 8,950 levels in order to extend the up move. CLICK HERE FOR THE CHART