These 3 F&O stocks have seen up to 35% long buildup; trading guide here

In the last four days, one out of every 3 futures & options stocks has gained more than 10 per cent as the Nifty surged 6.3 per cent in the post Lok Sabha 2024 verdict cheer.

The NSE Nifty index has surged 6.3 per cent in the last four trading days as election result related anxiety made way for renewed optimism on continued reforms with the Modi-led coalition forming the government.

Amid the market rally, one out of every three futures & options stocks has gained more than 10 per cent during this period, with Aditya Birla Fashion Retail, Chambal Fertilisers and Ramco Cements leading the pack with gains in excess of 20 per cent each.

Among others, prominent shares include the likes of Vodafone Idea, India Cement, Zee Entertainment, LIC Housing Finance, Ambuja Cement, Tata Steel and SAIL - all up more than 13 per cent.

A closer look at the data available from NSE shows that select stocks from the 62-odd gainers have seen notable long buildup in the recent days. Hence, showing promise for further upside in the near term.

The counters are said to have witnessed long buildup when the underlying price rises in line with a corresponding increase in the open interest (read open positions) in the derivatives segment.

Here are three such stocks with notable buildup of long positions.

The Ramco Cements

Last close: Rs 880

Upside Potential: 21%

Support: Rs 820; Rs 800

Resistance: Rs 903; Rs 937

Shares of Ramco Cements have rallied 20.3 per cent in the last four trading sessions, with the open interest (OI) rising by as much as 34.6 per cent. In fact, other cement shares such as India Cement, Dalmia Bharat and JK Cement too have witnessed considerable long buildup in recent days.

Ramco Cements stock has bounced back above its longer-term moving averages on the weekly scale - such as the 100-WMA (Weekly Moving Average) and the 200-WMA. On the daily scale, the stock is within striking distance of its 200-DMA (Daily Moving Average) which stands at Rs 903. CLICK HERE FOR THE CHART

On the upside, the stock will need to break above Rs 937, in order to ignite hopes of a rally towards Rs 1,065 levels. In case of a downturn, the stock is expected to find near support at Rs 820, while the overall bias is likely to remain favourable as long as the stock holds above 800. 

Coromandel International

Last close: Rs 1,439

Upside Potential: 4.7%

Support: Rs 1,390; Rs 1,380

Resistance: Rs 1,450

The open interest in Coromandel International futures too has increased by 35 per cent in the last four days, while the stock has gained 12 per cent. On the chart, the Coromandel International stock is seen treading higher alongside the higher-end of the Bollinger Bands on the daily scale. 

The stock at present is trading in a fairly overbought zone, but bias is likely to remain positive as long as it holds above the Rs 1,390 and Rs 1,380 support zone. On the upside, the stock is trading in uncharted territory and may attempt to record newer highs in the coming days with an eye on Rs 1,500-mark. Near resistance can be expected around Rs 1,450. CLICK HERE FOR THE CHART

Crompton Greaves Consumer Electricals

Last close: Rs 412

Upside Potential: 9.2%

Support: Rs 386

Resistance: Rs 427; Rs 438

Crompton Greaves stock has gained 9 per cent, backed by 29 per cent jump in OI in the last four days. The stock seems to have bounced back after testing support at its 20-DMA on the daily scale.

The long-term chart suggests that the stock is likely to trade with a favourable bias as long as it holds above Rs 386. On the upside, the stock may attempt a rally towards Rs 450, with interim resistance seen at Rs 427 and Rs 438. CLICK HERE FOR THE CHART