Midcap Monitor

September 2018

Technical & Derivatives

SAMVAT 2078

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Technical & Derivatives Diwali Picks - Samvat 2078

SCRIPT CMP Buying Range SL TARGET UPSIDE (%) Derivatives Data Observation
Rollover has been intact at 93% from the last 2 months which indicates longs are 
upright in the stock with more than 10% price increase in the October series. One 
SBIN 503 503‐490 450 600 19
can look for Bull Call Spread opportunity here by buying 510 Call and selling 540 
Call of the November series at a net premium cost of around 10 points.
Maximum Call OI is seen at 1900 and highest Call writers unwinding in this strike 
is making it a comfortable upside. Short covering seen in the October series so 
LT 1792 1792‐1760  1600 2200 23 far will drive the stock to higher zones. One can initiate Bull Call Spread by 
buying 1820 Call and selling 2000 Call of the November series at a net premium 
cost of around 40 points. 
New entrant in the F&O world and good welcome by addition in OI by more than 
TRENT 1050 1050‐1030  950 1250 19
36% indicating addition of long positions. 
Short covering is seen with increase in price by almost 18% in the October series 
BATA 2022 2022‐1980  1800 2450 21
and increase in implied volatility indicating bulls to be in action.
OI shedding by almost 9% with increase in price which suggests shorts are 
TECHM 1517 1517‐1480  1350 1850 22 covering their position and rollover of 97% in the previous series indicating 
positive sentiment and strong hands in the counter.

Wishing everyone a "Happy Diwali & Prosperous Samvat 2078"

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Technical & Derivatives Diwali Picks - Samvat 2078

SBI (CMP : 503) - Buy (Duration : 2-3 Months)

Buying Range: 503-490 Stop Loss: 450 Target: 600

Rational:
3 The stock has given a triangle breakout on the daily scale
3 It is sustaining above the breakout zone and started the next leg on the upside indicating strength
3 RSI oscillator is placed in the bullish zone which will support the upmove
3 Considering the current chart structure, we expect the stock to inch higher towards 600 levels
3 Hence we advise to buy the stock in the range of 503-490 with a stop loss of 450

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Technical & Derivatives Diwali Picks - Samvat 2078

L&T (CMP : 1792) - Buy (Duration : 2-3 Months)

Buying Range: 1792-1760 Stop Loss: 1600 Target: 2200

Rational:
3 L&T has given a breakout of the Inverse Head and Shoulder pattern on the weekly scale which has bullish implication
3 It is continuously forming higher-highs and higher-lows on the weekly charts indicating positive structure
3 RSI oscillator is positively placed indicating strength in the counter for higher level
3 Considering the current chart structure, we expect the stock to inch higher towards 2200 levels
3 Hence we advise to buy the stock in the range of 1792-1760 with a stop loss of 1600

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Technical & Derivatives Diwali Picks - Samvat 2078

Trent (CMP : 1050) - Buy (Duration : 2-3 Months)

Buying Range: 1050-1030 Stop Loss: 950 Target: 1250

Rational:
3 Trent is in overall strong uptrend and recently give a fresh breakout on the weekly scale
3 The chart structure is positive on the Weekly and Monthly charts, and small decline in daily scale provides fresh buying opportunity
3 RSI oscillator on all the time frames are well placed in the bullish territory which indicates buying interest to continue
3 Considering the current chart structure, we expect the stock to inch higher towards 1250 levels
3 Hence we advise to buy the stock in the range of 1050-1030 with a stop loss of 950

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Technical & Derivatives Diwali Picks - Samvat 2078

Bata India (CMP : 2022) - Buy (Duration : 2-3 Months)

Buying Range: 2022-1980 Stop Loss: 1800 Target: 2450

Rational:
3 Bata India has given a strong breakout on the weekly charts
3 The stock is tagging the upper Bollinger band which indicates strength in the counter
3 RSI oscillator on the daily, weekly and monthly charts are positively placed which will take prices higher
3 Considering the current chart structure, we expect the stock to continue to its up move towards 2450 levels
3 Hence we advise to buy the stock in the range of 2022-1980 with a stop loss of 1800

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Technical & Derivatives Diwali Picks - Samvat 2078

Tech Mahindra (CMP : 1517) - Buy (Duration : 2-3 Months)

Buying Range: 1517-1480 Stop Loss: 1350 Target: 1850

Rational:
3 TechM has formed a strong base near 50 EMA after a long consolidation on the daily scale which is a positive sign
3 It has given a fresh breakout on the daily charts indicating buying interest in the counter
3 RSI oscillator on all the time frames are well placed in the bullish territory which indicates strong momentum to continue
3 Considering the current chart structure, we expect the stock to inch higher towards 1850 levels
3 Hence we advise to buy the stock in the range of 1517-1480 with a stop loss of 1350

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Siddhartha Khemka Chandan Taparia Bhavin Shah
Head - Retail Research Derivatives & Technical Analyst Technical & Derivatives Analyst

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