BULLISH BETS
SUN PHARMACEUTICAL
Change in Open Interest in May Series: – 3.3% Change in price in May Series: 1.7% RATIONALE: The stock is up nearly 12% in the past week after announcing the acquisition of Organon. The stock is showing early signs of a potential trend reversal after a lengthy consolidation beneath a declining resistance trendline around Rs 1,850–1,880, said Ajit Mishra, senior vice president, research, at Religare Broking. Mishra suggests buying for a target of Rs 1,960 with a stop-loss at Rs 1,740.
ADANI PORTS AND SEZ
Change in Open Interest in May Series: 2.64% Change in price in May Series: 1.10%
RATIONALE: The stock has broken out of a trading range that had held for over two years on the weekly charts, said Vipin Kumar, AVP – derivatives and technical research at Globe Capital Markets. “This breakout was well supported by a combination of long build-up and short covering over the past couple of trading sessions,” he said. Kumar suggests buying May futures in the Rs 1,640–1,620 range for a target of Rs 1,750– 1,800, with a stop-loss at Rs 1,550.OIL AND NATURAL GAS CORPORATION (ONGC)
Change in Open Interest in May Series: 0.9% Change in price in May Series: -1.8%
RATIONALE: Shares of ONGC made a fresh 52-week high last week amid rising Brent crude prices due to the West Asia conflict. The stock has recently seen a positive price-volume breakout at the Rs 292 level, said Akshay Bhagwat, senior vice president, derivatives research, at JM Financial Services.
“The last couple of days of profit booking are offering a lucrative trade setup to rebuild long bets,” he said. Bhagwat suggests buying May futures at Rs 301–297 for a target of Rs 318–329, with a stop-loss at Rs 287.
SONA BLW PRECISION FORGINGS
Change in Open Interest in May Series: -1.13% Change in price in May Series: 1.07%
RATIONALE: Sona shares hit a 52-week high on Thursday, breaching their hurdle of the Rs 550–560 zone. “In the current series, like in April, it is showing a positive reaction, and hence a throwback towards the Rs 585–575 zone is likely to provide a favourable entry point, with Rs 540 as a strict risk management level,” said Amit Trivedi, SVP, Institutional Equities Research at Yes Securities. His target on the stock is Rs 660.
BHARTI AIRTEL
Change in Open Interest in May Series: -2.27% Change in price in May Series: 0.33%
RATIONALE: Bharti Airtel broke out of a two-month range on Thursday after profi ttaking from record highs had tested its earlier breakout zone, said Kumar of Globe Capital Markets. “We suggest adding long positions in Bharti Airtel within the Rs 1,870–1,840 range, with a stop-loss below Rs 1,750, for a price target of Rs 2,000–2,100,” he said.
ITC
Change in Open Interest in May Series: -1.4% Change in price in May Series: -1.75%
RATIONALE: Technical momentum indicators hint at a reversal after a shortterm bottoming pattern at `300, said JM’s Bhagwat. He suggests buying ITC May futures at Rs 310–315 for a target of Rs 327–334, with a stop-loss at Rs 299.
KOTAK MAHINDRA BANK
Change in Open Interest in May Series: 3.35% Change in price in May Series: 1.46%
RATIONALE: The stock saw a rise in open interest ahead of its fourth-quarter results this week, along with a price rise, signalling bullishness. Higher rollovers and bullish build-up point to strength, with a move above Rs 385 needed to revive momentum towards Rs 420, said Trivedi of Yes Securities. He added that Rs 360 remains key support.
BEARISH BETS
TATA MOTORS PASSENGER VEHICLES
Change in Open Interest in May Series: 5.1% Change in price in May Series: -3.2%
RATIONALE: The 5.1% increase in its futures open interest, coupled with a 3.2% decline in the stock price, points to fresh bearish build-up, signalling continued negative sentiment. “Recent rebounds have been short-lived, failing to sustain above resistance zones. The broader structure continues to weaken. The current bounce appears corrective rather than a reversal, unless the stock reclaims the Rs 370–380 zone convincingly,” said Mishra, who expects the stock to fall to Rs 320, with stop loss at Rs 355.
