1. Tata Motors Ltd
| Counter | TATAMOTORS LTP 667.15 |
| Call | Buy on dip |
| Target 1 | 770 |
| Target 2 | – |
| Stop Loss | 610 on close |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 645 & 625 |
Tata Motors Group (Tata Motors) is a USD 42 billion organisation. It is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India’s largest OEMs offering an extensive range of integrated, smart and e-mobility solutions.
| Previous Close | 634.0 | TTM EPS | 32.0 |
| 52 Week High | 669.0 | TTM PE | 20.9 |
| 52 Week Low | 375.2 | P/B | 0.8 |
| Sector PE | 53.8 | Mkt Cap (Rs. Cr.) | 221,631 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- Last week, the stock reached its highest weekly closing ever.
- It also broke out of a consolidation period that lasted 13 weeks, indicating a positive trend.
- The technical indicators show a positive momentum for the stock.
- If the counter maintains its value above 600 in the short to mid-term, then “accumulate” with potential to reach at 720 and even 820 levels in the coming months.Top of Form
Open Interest Study
| Expiry | CP | Strike | Open Interest |
| 26-Oct-23 | CE | 700 | 4497 |
| 26-Oct-23 | CE | 670 | 2716 |
| 26-Oct-23 | CE | 650 | 2637 |
| 26-Oct-23 | CE | 680 | 2553 |
| 26-Oct-23 | CE | 660 | 2437 |
| 26-Oct-23 | PE | 620 | 2398 |
| 26-Oct-23 | PE | 650 | 2365 |
| 26-Oct-23 | PE | 630 | 2293 |
| 26-Oct-23 | PE | 660 | 2268 |
- October OI indicates, there’s a strong resistance at the 700 and 670 call option levels. On the other hand, OI is on 650 and 620 put option levels, indicating buy on dips.
- In this series, there might be new buying interest if the price drops to 650 or lower.
F&O Strategy
| Scrip | TATAMOTORS LTP 667.15 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pullback |
| Max Reward Expected | ₹38,000 |
| Max Risk Expected | ₹19,000 |
| Action | Scrip | Quantity | IP | LTP |
| BUY | TATAMOTORS OCT 660 CE | 1425 | 17.1 | 17.1 |
| SELL | TATAMOTORS OCT 700 CE | 1425 | 3.75 | 3.75 |
|
2. Bharat Forge Ltd
| Counter | BHARATFORGE LTP 1117.35 |
| Call | Buy on dip |
| Target 1 | 1200 |
| Target 2 | – |
| Stop Loss | 1000 |
| Time Horizon | 3-4 weeks |
| Notes | Buy-On-Dip towards 1100 & 1050 |
Bharat Forge manufactures an extensive array of critical and safety components for several sectors including Automobiles (across Commercial & Passenger Vehicle), Oil & Gas, Aerospace, Locomotives, Marine, Energy (across renewable and non-renewable sources), Construction, Mining and General Engineering.
| Previous Close | 1148.0 | TTM EPS | 15.1 |
| 52 Week High | 2745.1 | TTM PE | 74.1 |
| 52 Week Low | 1676.0 | P/B | 7.9 |
| Sector PE | 742.1 | Mkt Cap (Rs. Cr.) | 52,048 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom Research)
- Technically, the counter is witnessing a “Consolidation” since last six weeks.
- The major trend remains “Up” while short to mid-term trend also remains “Range to UP” above 1000 levels.
- The counter post consolidation can attempt higher levels in days to come.
Open Interest
| Expiry | CP | Strike | Open Interest |
| 26-Oct-23 | CE | 1200 | 736 |
| 26-Oct-23 | CE | 1120 | 525 |
| 26-Oct-23 | CE | 1150 | 506 |
| 26-Oct-23 | CE | 1100 | 261 |
| 26-Oct-23 | PE | 1100 | 248 |
| 26-Oct-23 | PE | 1070 | 220 |
| 26-Oct-23 | CE | 1160 | 213 |
| 26-Oct-23 | CE | 1110 | 201 |
| 26-Oct-23 | PE | 1000 | 199 |
- October series, maximum call options open interest at 1200 and 1120 levels. Whereas, there’s maximum put options open interest at 1100 and 1070 levels, suggesting indicating support levels.
- Buy on dips toward these support levels, remains outlook with strong mid-term hurdle cum target of 1200 levels.
F&O Strategy
| Scrip | BHARATFORGE LTP 1117.35 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to pullback |
| Max Reward Expected | ₹35,800 |
| Max Risk Expected | ₹24,200 |
| Action | Scrip | QTY | IP | LTP |
| BUY | BHARATFORGE OCT 1100 CE | 1000 | 31.7 | 31.7 |
| SELL | BHARATFORGE OCT 1160 CE | 1000 | 7.5 | 7.5 |
|
Disclaimer: This document is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. If you have received the publication in error please notify the sender immediately. If you are not the named addressee, you should not disseminate, distribute or copy this document. You are hereby notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. This document has no contractual value and is not and should not be construed as advice or as an offer or the solicitation of an offer or a recommendation to take action in consonance in any jurisdiction. Finwizard Technology Private Limited (“Fisdom”) makes no guarantee, representation or warranty and accepts no responsibility or liability for the accuracy or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will Fisdom be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document, even if you advise us of the possibility of such damages, losses or expenses. Fisdom does not undertake any obligation to issue any further publications or update the contents of this document. The information stated and/or opinion(s) expressed herein are expressed solely as general commentary for general information purposes only and do not constitute advice, solicitation or recommendation to act upon thereof. Fisdom does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. Fisdom may have issued other similar documents that are inconsistent with and reach different conclusion from the information presented in this document. The relevant offering documents should be read for further details. You should make such researches/inspections/inquiries as it deems necessary to arrive at an independent evaluation of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks involved. Fisdom makes no representations that the offerings mentioned in this document are available to persons of any other country or are necessarily suitable for any particular person or appropriate in accordance with their local law. Among other things, this means that the disclosures set forth in this document may not conform to rules of the regulatory bodies of any other country and investment in the offer discussed will not afford the protection offered by the local regulatory regime in any other country. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. The historical performance presented in this document is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for future or specific investments. The relevant product documents should be read for further details. Fisdom does not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at anytime.
