Option Picks For the Week

  • by THO
  • 9 months ago
  • news
  • 1

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gave a bullish closing above 14,300. It seems that the January effect may be in place. Nifty breached its resistance of 14,300 and seems to be heading towards the level of 14,500. The expectations from the stimulus packages in the U.S seems to be sustaining the markets on higher levels. The PCR being 1.3 and ATM implied volatility being 14.9 and Max pain being at 14300.

The support of Nifty seems to be at 14,100 and 14,000 being the psychological level. Weekly closing of Nifty above 14,300 suggests a possible rally till 14,500 where it may halt in order to rally to 14,750.
Following are some picks for the upcoming week: 
            
1. HDFC Bank Ltd (NS:) Jan 1500 CE (18-20)

Target: 32
Stop Loss: 9
The stock is taking the support of 1410 and ripe for a breakout above 1445 and also sustaining above its near term moving averages. Further upward momentum is expected once the level of 1445 is breached. The PCR of 0.6 suggests a possible bullish movement and as sustained above 32,000 the chances that it will fare well also has increased.
 
2. Hero MotoCorp Ltd (NS:) Jan 3200 CE (87-89)

Target: 138
Stop Loss: 49
The stock has given a breakout above its daily level of 3150 and closed above it. With the recent positive momentum in the Automobile sector, further momentum is expected. With a PCR of 0.6, one can expect to see the impending bullish rally.

Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.
 

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