Wednesday, December 6, 2023

F&O stocks in focus: How to trade IRCTC, Cummins India, L&T Finance Holdings

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After a short covering rally in Nifty and a long build-up seen in Nifty Bank on Monday, both indices were trading with a negative bias on Tuesday. For the current weekly series, 19,500-19,600 call has significant Open Interest in Nifty. In the case of Nifty Bank, Put writers showed conviction in the 43,500-43,600 zone.According to the charts, Nifty may be taking support at 19,350, followed by 19,300 and 19,250. On the higher side, 19,500 can be an immediate resistance, followed by 19,550 and 19,600, said Deven Mehata of Choice Broking.

The charts indicate that Bank Nifty may get support at 43,500, followed by 43,350 and 43,200. If the index advances, 43,800 would be the initial key resistance level to watch out for, followed by 43,950 and 44,100, he said.Among Nifty constituents, 22 stocks have witnessed a long build-up and 23 stocks have witnessed a short-covering rally. While 4 stocks have witnessed short build-up and 1 stock saw long unwinding.

We spoke to analysts on how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:

Cummins India Futures
Cummins India Futures saw long buildup with OI of 1.8% , and option chain reflects on 1700PE holding maximum exposure, which hints on decisive support for the scrip now. CE writers add aggressive positions all the way up till 1800 strike, which shows the upside potential for the scrip from current levels.

(Shilpa Rout, Derivatives Lead Analyst, Prabhudas Lilladher)

L&T Finance Holding Futures
L&T Finance Holding Futures saw short covering on the scrip, with a decisive breakout happening above 140 zones, and CE writers also inching North towards 155 levels.

(Shilpa Rout, Derivatives Lead Analyst, Prabhudas Lilladher)


IRCTC retested the base followed by upside movement. Closing above Rs 672 level can lead to further improvement up to Rs 695 level. Long build-up was seen this expiry (OI +4.9%, Price +1%), OI is trading near 1Y low at $99mn. Max call/put at 700/650 strike with heavy call writing seen of ~300 lots seen at 670 strike.

(Emkay Global)

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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