Angel One, HFCL in focus as stocks in F&O ban; key levels to track here

Angel One has shed 33% from its June high, and the stock has seen formation of 'Death Cross' on the daily chart in recent days; thus signalling likely further weakness at the counter.

Angel One, HFCL, OFSS and RBL Bank are the four derivative stocks placed under the futures & options (F&O) ban period as of date. Meaning, taking of fresh positions in these 4 stocks has been temporarily barred. 

What does F&O ban mean?

  As per the NSE derivatives mandate, as and when the open interest (OI), open positions of stocks or indices across contracts - futures, call options and put options, exceeds 95 per cent of the market-wide position limits, or MWPL, the said contract is then placed under ban period.  In a ban period, traders are barred from taking fresh positions in such stocks; however, existing positions can be exited as and when.  Fresh positions created in stocks under F&O ban attract a penalty of 1 per cent of the value of increased position subject to a minimum of ₹5,000 and maximum of ₹1,00,000, as per the NSE circular. 

F&O cues for Angel One, HFCL

  The F&O data shows that Angel One September futures saw the open interest rise by as much as 24 per cent in the last four trading sessions, while the stock declined nearly 4 per cent.  In general, a rise in open interest with a corresponding dip in OI, is considered as build-up of short positions at the particular counter.  On Tuesday, thus far, the Angel One stock was down 1 per cent at ₹2,229 levels. The Put-Call-Ratio (PCR) stands at 0.6 levels, implying presence of higher OI in Calls versus Puts.  ALSO READ | Set for pre-Diwali run? 72% of Nifty, 63% of Nifty 500 stocks above 200-DMA  The highest OI in Calls is seen at ₹2,300 and ₹2,400 Strikes. Whereas, highest OI in Puts is visible at ₹2,200 and ₹2,300 Strikes.  Meanwhile, HFCL stock has been placed under the F&O ban for the last few trading sessions. Off late, the September futures contract has seen a 2 decline in OI with a corresponding near 5 per cent increase in the underlying share price.  HFCL is relatively thinly traded in the options segment, with notable OI ₹75 and ₹80 Strike Calls and ₹70 Put.  Given this background, here's what the technical charts suggest for Angel One and HFCL shares. 

What lies ahead for Angel One, HFCL stocks?

Angel One

Current Price: ₹2,229  Likely Target: ₹1,895  Downside Risk: 15%  Support: ₹2,080; ₹2,000; ₹1,960  Resistance: ₹2,350; ₹2,428  Angel One stock has been trading below the key moving averages on the daily scale, post the sharp breakdown on August 21. At current levels, the stock has shed almost 33 per cent from its June high of ₹3,285. Further, in recent days the stock has witnessed the formation of 'Death Cross' on the daily chart, meaning the 50-Day Moving Average (50-DMA) has slipped below the 200-DMA. 

 

 

  Technical chart suggests that the near-term bias for the stock is likely to remain tepid as long as the stock trades below ₹2,428 levels, with near resistance anticipated around the 20-DMA, which stands at ₹2,350.  The stock seems to be headed towards the 200-Week Moving Average (200-WMA), which stands at ₹1,960 levels; below which a dip to ₹1,895 levels cannot be ruled out. Intermediate support for the stock can be expected around ₹2,080 and ₹2,000-mark. 

HFCL

Current Price: ₹73.77  Likely Target: ₹80 - ₹85/ ₹61  Upside Potential: 15.2%  Downside Risk: 17.3%  Support: ₹69  Resistance: ₹75.90  HFCL stock has been trading with a negative bias since December 2024, after the stock broke below the 200-DMA support. The daily chart shows that the near-term bias at the counter is likely to remain subdued as long as the stock trades below ₹75.90. Breakout above which, can trigger some short-covering based rally up to ₹80 - ₹85-odd levels, wherein stand the 100-DMA and the 50-WMA. 

 

  On the downside, the stock has made multiple lows around ₹69 levels, which going forward is likely to act as a first line of defense for HFCL. Breakdown below the stock, could see the stock extend the fall towards ₹61 levels, hints the long-term chart.