Stock market crash: Dixon Tech, Ambuja, BHEL among stocks to buy on dips

Here are 5 F&O stocks that are trading with a PCR in excess of 1; Options data and technical charts suggest up to 14% upside for these stocks in the December series; key levels here.

A total of 13 futures & options (F&O) stocks out of a total of 223 in the segment, are seen trading with a PCR (Put Call Ratio) in excess of 1 mid-way into the December series.  Dixon Technologies, Ambuja Cements, Vedanta, Bank of Baroda, Apollo Hospitals, CoForge, Indian Hotels, RECL, BHEL, Piramal Enterprises, Voltas, Persistent Systems and APL Apollo Tubes are the 13 stocks. That apart, the Nifty December futures too quote with a PCR of around 1.2.  The PCR is calculated by dividing the total number of open positions in Puts for a particular stock/ index as against the open interest (OI) in the same underlying Calls.    Stock Market Crash News    A PCR above 1 implies that the particular stock/ index have higher OI in Puts versus Calls. In general, traders or market participants buy Put when they expect the underlying price or index to drift lower. Inversely, a Put can also be sold/ written in anticipation of a likely up move in the near future.  Buying of Put/ Call requires limited capital and implies risk limited to the capital invested. However, in case of a seller/ writer the margin requirement is higher; hence such traders are considered as stronger or more influential players.    Therefore, stocks with PCR tends to imply presence of stronger hands in terms of writers; thus suggesting that the said stock may see limited downside or witness an upward movement during the particular derivative series.  Here's a technical outlook on 5 of the above mentioned 13 stocks, with likely support and resistance levels as a trading guide for the near-term.  Dixon Technologies  Current Price: Rs 17,600  Upside Potential: 13.6%  Support: Rs 17,100; Rs 16,900  Resistance: Rs 18,700; Rs 19,400  Options data shows, highest open interest (OI) in Dixon Technologies Calls and Puts at Rs 18,000 and Rs 16,000 Strike Prices, respectively. That apart, notable Put writing is visible at Rs 17,000 and Rs 16,500 Strike.  On the charts, Dixon Technologies is seen trading in a range of Rs 17,100 - Rs 17,800. Key support for the stock stands at Rs 16,900. As long as this support is held, the stock is expected to trade with a positive bias and could rally all the way to Rs 20,000-mark. Interim resistance for the stock can be expected around Rs 18,700 and Rs 19,400 levels. CLICK HERE FOR THE CHART  Ambuja Cements  Current Price: Rs 568  Upside Potential: 8.1%  Support: Rs 564  Resistance: Rs 590; Rs 595; Rs 600  Ambuja Cements highest OI in Calls and Puts stands at Rs 600 Strike Price. Notable OI in Calls also stands at Rs 580 and Rs 590 Strikes; thus indicating potential resistance around Rs 590 - Rs 595 zone.  On the charts, Ambuja Cements is seen consolidating around the 50-DMA (Daily Moving Average) which stands at Rs 564. As long as this support is held, the stock is expected to attempt a bounce back towards Rs 600-mark; above which a spurt to Rs 615 seems likely. CLICK HERE FOR THE CHART    Vedanta  Current Price: Rs 508  Upside Potential: 9.3%  Support: Rs 498; Rs 490; Rs 480  Resistance: Rs 525  Vedanta highest OI in Calls stands at Rs 520 Strike Price followed by Rs 530, Rs 540 and R 500 Strikes. On the other hand, highest OI in Puts stands at Rs 500; which implies presence of strong support around Rs 490 levels, and likely resistance in the Rs 530 - Rs 540 zone.  Chart shows, the stock is likely to find considerable support around Rs 498; below which it can possibly dip to Rs 480 levels. On the upside, break and sustained trade above Rs 525 and trigger an up move towards Rs 555 levels. CLICK HERE FOR THE CHART  RECL  Current Price: Rs 544  Upside Potential: 13.6%  Support: Rs 535  Resistance: Rs 555; Rs 580  Options data shows presence of notable OI in RECL at Rs 570, Rs 580 and Rs 600 Calls. On the other hand, notable OI is visible at the Rs 530 and Rs 500 Puts. The option pricing data indicates a likely trading range of Rs 525 - Rs 575 for the December series.  Technically, on the chart, the stock has slipped back below its 100-DMA, which stands at Rs 555; and is seen testing support around the 20-WMA (Weekly Moving Average) at Rs 550 levels.  The overall bias for the stock is likely to remain positive as long as the stock holds above Rs 535. On the upside, the stock can potentially rally to RS 618; with interim resistance likely around Rs 580. CLICK HERE FOR THE CHART     BHEL  Current Price: Rs 239  Upside Potential: 10%  Support: Rs 234; Rs 230  Resistance: Rs 254; Rs 258  The highest OI for BHEL stands at Rs 250 and Rs 160 Calls; whereas, in case of Puts - the highest OI is seen at Rs 250 Strike Price followed by Rs 240 and Rs 230. This implies the stock could find support in the Rs 230 - Rs 235 zone; below which Put writers may be forced to unwind positions.  Technical chart shows that the overall trend for BHEL is negative, as the stock is seen trading below key moving averages. On Friday, after a near 3-week struggle the stock has slipped back below its 20-DMA. However, near support for the stock exists at Rs 234. As long as this support is held, the stock can potentially attempt a pullback in the near-term.  On the upside, a spurt towards Rs 263 levels cannot be ruled out. Interim hurdles for the stock are placed at Rs 254 and Rs 258. CLICK HERE FOR THE CHART