Maruti Suzuki India
CMP: Rs 12,916.50 Change in Open Interest in February (%): 40.79 Change in price in February Series (%): 7.6 RATIONALE: Auto stocks were among the top gainers on Saturday after the Union Budget announcement, which is set to boost domestic consumption. “Nifty Auto index has bottomed out with the formation of Bullish divergence on weekly scale and most of the stocks are showing strength and recovery mode,” said Chandan Taparia, head of technicals and derivatives research at Motilal Oswal Financial Services. Taparia said has a target of `13,700 on the stock and recommends buying with a stop loss at Rs 12,500.Bajaj Finance CMP: Rs 8,000.1 Change in Open Interest in February (%):6.6 Change in price in February Series(%): 1.2 RATIONALE: The stock has moved up over 8% in the past month despite a weak broader market after it’s better-than-expected third quarter results. “The stock has closed at its 52-week high following a continuous accumulation of shares in December, resulting in a strong breakout after the quarterly results. A positive trigger in the budget to support retail credit is anticipated to enhance spending and will benefit the stock,” said Rajesh Palviya, head of technicals and derivatives research at Axis Securities. Palviya suggests a target of Rs 8,300- 8,500, with stop loss at Rs 7,750 levels.Eicher Motors CMP: Rs 5,390.15 Change in Open Interest in February (%): 3.28 Change in price in February Series (%): 4.4
RATIONALE: Sudeep Shah, head of technical and derivatives research at SBI Securities recommends accumulating the stock in the zone of Rs 5,400-5,350 level with the stop loss of Rs 5,200. “As the stock is trading at all-time high levels, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock,” said Shah. He had set a target of Rs 5,700, followed by Rs 5,830 in the short-term
Laurus Labs CMP: Rs 595.60 Change in Open Interest in February (%): -1.6 Change in price in February Series (%): 1.2
RATIONALE: “The stock has regained all its recent losses after President Trump’s executive order to suspend U.S. foreign aid,” said Palviya. He said that the stock is trading above all its short-term moving averages, suggesting further upside in the stock. Palviya has a target of `620-640 with stop loss at `575.
Havells India CMP: Rs 1,656.2 Change in Open Interest in February (%): -1.55 Change in price in February Series (%): 7.3
RATIONALE: Another pick from the consumption basket, Havells will also reap the benefits of the uptick in consumption. Shah said that it has surged above its 20 and 50-day EMA (exponential moving average) level, which is a bullish sign and the momentum indicators and oscillators are also supporting the overall bullish chart structure.
He suggests accumulating the stock in the zone of Rs 1,660-1,640 level with the stop loss of Rs 1,600 with a target of Rs 1,740, followed by Rs 1,780 in the short-term.
Aditya Birla Fashion
CMP: Rs 283.25 Change in Open Interest in February (%): 6.36 Change in price in February Series (%): 6.6
RATIONALE: Taparia said that the stock has seen a ‘consolidation breakout’ and buying interest in the consumption sector could drive it up further. “Followup activities above the Rs 288 zone could drive the short covering move,” said Taparia, who suggests a target of Rs 300, and a stop loss at Rs 274.
Britannia Industries CMP: Rs 5,201.35 Change in Open Interest in February (%): 4.7 Change in price in February Series (%): 2.5
RATIONALE: Palviya said that technical indicators suggest a potential resumption of a strong upward rally, fuelled by the shift in momentum to consumption stocks. Traders could buy the stock futures for a target of Rs 5,480-5,550, with stop loss at Rs 5,000.
Jubilant FoodWorks CMP: Rs 739.8 Change in Open Interest in February (%):6.23 Change in price in February Series (%): 7.4
RATIONALE: Shah recommends accumulating the stock in the zone of Rs 740-730 level with the stop loss of Rs 710 for a target of Rs 775, followed by 800 in the short-term.
“Currently, it is trading above its short and long-term moving averages and these averages are in rising trajectory and they are in desired sequence, which suggest the trend is strong,” said Shah
