Option Picks for the Week

  • by THO
  • 6 days ago
  • news
  • 1


closed at 17,764.80 nearly 337 points lower than the previous week’s close which is 18,102.75. The support of Nifty seems to be around 17,500 and resistance at 17,900. The PCR is around 0.64 for the 19th November expiry this seems to be indicating bullish sentiment, but the closing of the market suggests otherwise.

The most active Call was that of NIFTY 17,800 CE with OI of 87,095 and Put was of NIFTY 17,750 PE with an OI of 69,214. Nifty has closed below its support level of 17,800 and therefore in the coming weeks we expect the markets to further correct and trade in the range of 17,500-17,900.  Stocks that have seen the most active call options were PNB (NS:) 42 CE and the put option was PNB 41 PE.

Here are a few top picks for the week:

1. BUY: State Bank Of India (NS:) 500 CE (12-13)

TARGET: 23
STOP LOSS: 4

This stock is taking support on its daily charts and has given a cross over of 8 DEMA over 50 DEMA on its intraday charts. The daily charts are signaling a reversal pattern and the PCR is 0.4 which seems favorable, the Banknifty is also trading above its support level and therefore we find it to be a good opportunity. Therefore, we advise taking a position above 12 with a Target of 23 and a Stop Loss of 4.
 
2. BUY:  Britannia Industries Ltd (NS:) 3600 PE (46-47)

TARGET: 72
STOP LOSS: 25

The stock has gone below its 200 DEMA on its daily chart and therefore further downtrend is expected in the stock below the level of 3534 on its daily chart in the spot market. One can also find a shooting star pattern on the monthly charts. Therefore, we advise taking a position above 46 with a target of 72 and a Stoploss of 25.

Disclaimer – Neither CapitalVia nor its analysts hold a position in any of the stocks mentioned above.



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