Ahmedabad Times

Brief protecting drove April’s rally throughout the broader market and in a number of shares. Whereas Might might not see positive aspects of an identical scale, inventory particular motion is anticipated to persist. Listed here are analysts’ high derivatives picks for the month.

BULLISH BETS

SUN PHARMACEUTICAL
Change in Open Curiosity in Might Collection: – 3.3% Change in worth in Might Collection: 1.7% RATIONALE: The inventory is up almost 12% prior to now week after saying the acquisition of Organon. The inventory is displaying early indicators of a possible pattern reversal after a prolonged consolidation beneath a declining resistance trendline round Rs 1,850–1,880, mentioned Ajit Mishra, senior vice chairman, analysis, at Religare Broking. Mishra suggests shopping for for a goal of Rs 1,960 with a stop-loss at Rs 1,740.

ADANI PORTS AND SEZ
Change in Open Curiosity in Might Collection: 2.64% Change in worth in Might Collection: 1.10%
RATIONALE: The inventory has damaged out of a buying and selling vary that had held for over two years on the weekly charts, mentioned Vipin Kumar, AVP – derivatives and technical analysis at Globe Capital Markets. “This breakout was properly supported by a mixture of lengthy build-up and brief protecting over the previous couple of buying and selling classes,” he mentioned. Kumar suggests shopping for Might futures within the Rs 1,640–1,620 vary for a goal of Rs 1,750– 1,800, with a stop-loss at Rs 1,550.OIL AND NATURAL GAS CORPORATION (ONGC)
Change in Open Curiosity in Might Collection: 0.9% Change in worth in Might Collection: -1.8%

RATIONALE: Shares of ONGC made a contemporary 52-week excessive final week amid rising Brent crude costs because of the West Asia battle. The inventory has not too long ago seen a optimistic price-volume breakout on the Rs 292 stage, mentioned Akshay Bhagwat, senior vice chairman, derivatives analysis, at JM Monetary Companies.

“The final couple of days of revenue reserving are providing a profitable commerce setup to rebuild lengthy bets,” he mentioned. Bhagwat suggests shopping for Might futures at Rs 301–297 for a goal of Rs 318–329, with a stop-loss at Rs 287.

SONA BLW PRECISION FORGINGS
Change in Open Curiosity in Might Collection: -1.13% Change in worth in Might Collection: 1.07%

RATIONALE: Sona shares hit a 52-week excessive on Thursday, breaching their hurdle of the Rs 550–560 zone. “Within the present collection, like in April, it’s displaying a optimistic response, and therefore a throwback in direction of the Rs 585–575 zone is probably going to supply a beneficial entry level, with Rs 540 as a strict threat administration stage,” mentioned Amit Trivedi, SVP, Institutional Equities Analysis at Sure Securities. His goal on the inventory is Rs 660.

BHARTI AIRTEL
Change in Open Curiosity in Might Collection: -2.27% Change in worth in Might Collection: 0.33%

RATIONALE: Bharti Airtel broke out of a two-month vary on Thursday after profi ttaking from report highs had examined its earlier breakout zone, mentioned Kumar of Globe Capital Markets. “We advise including lengthy positions in Bharti Airtel throughout the Rs 1,870–1,840 vary, with a stop-loss beneath Rs 1,750, for a worth goal of Rs 2,000–2,100,” he mentioned.

ITC
Change in Open Curiosity in Might Collection: -1.4% Change in worth in Might Collection: -1.75%

RATIONALE: Technical momentum indicators trace at a reversal after a shortterm bottoming sample at `300, mentioned JM’s Bhagwat. He suggests shopping for ITC Might futures at Rs 310–315 for a goal of Rs 327–334, with a stop-loss at Rs 299.

KOTAK MAHINDRA BANK
Change in Open Curiosity in Might Collection: 3.35% Change in worth in Might Collection: 1.46%

RATIONALE: The inventory noticed an increase in open curiosity forward of its fourth-quarter outcomes this week, together with a worth rise, signalling bullishness. Increased rollovers and bullish build-up level to energy, with a transfer above Rs 385 wanted to revive momentum in direction of Rs 420, mentioned Trivedi of Sure Securities. He added that Rs 360 stays key assist.

BEARISH BETS
TATA MOTORS PASSENGER VEHICLES
Change in Open Curiosity in Might Collection: 5.1% Change in worth in Might Collection: -3.2%

RATIONALE: The 5.1% enhance in its futures open curiosity, coupled with a 3.2% decline within the inventory worth, factors to contemporary bearish build-up, signalling continued damaging sentiment. “Latest rebounds have been short-lived, failing to maintain above resistance zones. The broader construction continues to weaken. The present bounce seems corrective somewhat than a reversal, until the inventory reclaims the Rs 370–380 zone convincingly,” mentioned Mishra, who expects the inventory to fall to Rs 320, with cease loss at Rs 355.