These stocks rallied up to 13% in run-up to Sept rollovers; what next?
Technical Outlook: RECL, PFC can potentially rally up to 17 per cent from here on; while Birlasoft and LTIMindtree may witness a sharp fall, suggests technical charts.
 "These stocks rallied up to 13% in run-up to Sept rollovers; what next?")
The Nifty has witnessed a rollicking rally in the last 12 trading sessions, and has surged 5.9 per cent or 1,420 points at its new life-time peak touched in trades on Friday at 25,559.
Amid the rally, several stocks logged strong gains with fresh positions build for the September series in the derivatives segments. As such, Birlasoft was the top gainer in the last 4 trading sessions, up 13.2 per cent. LTIMindtree, Indian Energy Exchange (IEX), Cholamandalam Investment and Finance Company. Power Finance Corporation (PFC), Bajaj Finserv, RECL and National Aluminium were the other major gainers - up in the range of 6-9 per cent each.
As per Axis Securities report, on a month-on-month basis - ITC, Grasim, Deepak Nitrite, Berger Paints and ONGC saw higher rollovers; while stock like Abott India, MphasiS, JK Cement and Naukri saw lower rollovers to the September series.
Amid this, can the stocks that logged strong gains in recent days be potential winners in the September F&O series? Here's a guide to plan out your trading strategy here:
Birlasoft
Current Price: Rs 677
Downside Risk: 26.9%
Support: Rs 656; Rs 607; Rs 553
Resistance: 695; Rs 738
Birlasoft stock witnessed a steep 18.7 per cent fall after it broke below its 200-DMA (Daily Moving Average) on July 31. Thereafter, the stock has consolidated and recouped most of its losses. For the last two trading sessions the stock is seen testing resistance around its 200-DMA, which now stands at Rs 695; above which key hurdle for the stock likes at Rs 738.
The short-term bias is likely to remain tepid as long as the stock trades below these hurdles. On the downside, the stock can potentially drop to Rs 495 levels, with interim support seen at Rs 607 and Rs 553. Near support for the stock is at Rs 656. CLICK HERE FOR THE CHART
LTIMindtree
Current Price: Rs 6,085
Downside Risk: 16.7%
Support: Rs 5,635; Rs 5,300
Resistance: Rs 6,220
LTIMindtree stock is seen trading close to its significant resistance at Rs 6,220 on the long-term chart. Unless the stock does not conquer this hurdle, it can potentially consolidate or correct in the near term.
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As such, LTIMindtree can fall back to Rs 5,070 levels; with interim support expected around Rs 5,635 and Rs 5,300 levels. On the positive side, break and sustained trade above Rs 6,220 can open the doors for a rally towards new highs. CLICK HERE FOR THE CHART
LIC Housing Finance
Current Price: Rs 678
Upside Potential: 7.2%
Support: Rs 665; Rs 625
Resistance: Rs 687
LIC Housing Finance stock has been struggling below its 100-DMA (Rs 687) for most of the August month. The stock, however, seems to be finding support around its 200-DMA at Rs 625. Thus suggesting an indicative trading range; with near support expected around the 20-DMA at Rs 665.
The medium-term chart too shows presence of key support around Rs 625. In case, the stock breaks on the upside it can potentially rally to Rs 727, wherein stands the 50-DMA. CLICK HERE FOR THE CHART
RECL
Current Price: Rs 624
Upside Potential: 16.5%
Support: Rs 592; Rs 552
Resistance: Rs 631; Rs 665
RECL stock is consistently seen making higher-highs and higher-lows on the weekly scale. The stock is likely to trade with a positive bias as long as it holds above Rs 552 - its 20-WMA (Weekly Moving average; with interim support seen at Rs 592.
On the upside, the stock can potentially rally to Rs 727, with some resistance likely around Rs 665. At present the stock is testing resistance on the daily scale at Rs 631. CLICK HERE FOR THE CHART
PFC
Current Price: Rs 554
Upside Potential: 11%
Support: Rs 550; Rs 520; Rs 511
Resistance: Rs 580; Rs 592; Rs 604
PFC has recently given a breakout on the daily scale. The stock will need to sustain above Rs 555 for the bullish momentum to continue. On the upside, the stock can potentially zoom to Rs 615; with interim resistance seen at Rs 580, Rs 592 and Rs 604.
On the flip side, in case, the stock falters and fails to hold above Rs 550 levels, it can test support around Rs 520 and Rs 511 levels. CLICK HERE FOR THE CHART
