BULLISH BETS
IPCA Lab
CMP: Rs 1,632
READING: 92% rollover to January series and 5% price gain in December series suggest bullish momentum RATIONALE: IPCA Labs remains one of the top picks of analysts for the January expiry. “The stock has broken out of an eight-week consolidation after forming a strong base around the Rs 1,530-1,550 zone and has outperformed the pharma index displaying improved relative strength,” said Sudeep Shah, head of technical and derivatives research at SBICAP Securities. Shah expects the stock to build on its positive momentum with a price target of Rs 1,730-1,750. Traders can maintain a stop loss at Rs 1,590, he said.United Spirits
CMP: Rs 1,579
READING: Rollovers at 97% to January series and price gain of 3.3% in December series suggest bullish momentum.
RATIONALE: The stock is expected to gain as the brewery sales tend to pick up after Diwali due to festivals, weddings and the winter season. The company is seen as a top beneficiary of the premiumisation trend in alcohol beverages.
“The price is trading comfortably above the 20-day EMA (exponential moving average), while the RSI (relative strength index) on the daily chart remains above the 60- mark, reinforcing the stock’s strong technical structure and momentum,” said Dhupesh Dhameja, derivatives analyst at Samco Securities. “Both price action and derivative data align to depict a bullish outlook.” Dhameja said traders could initiate fresh bullish positions at Rs 1,579, with a target of Rs 1,800. The bullish view will be reversed if the price closes below Rs 1,460, he said.
Sun Pharmaceutical
CMP: Rs 1,861
READING: Rollover at 88% to January and 6% price surge in December series hint at bullish momentum
RATIONALE: The stock remains a top pick among analysts due to the positive outlook for the pharmaceutical and healthcare industry next year. “The stock has closed above its previous seven-week high after trading in a tight range of Rs 1,830 to Rs 1,790 for December except in the last two trading sessions, where it gave a strong breakout closing above its 50- day moving average, indicating bullish momentum,” said Rajesh Palviya, head of technical and derivatives research at Axis Securities. Traders can buy with a stop loss of Rs 1,820 for a target of Rs 1,920-1,940, he said
Interglobe Aviation Ltd (IndiGo)
CMP: Rs 4,682
READING: Rollovers at 95% to January and price gain of 8.6% in December series suggest bullish momentum
RATIONALE: Palviya says short covering in futures during the December expiry last week and stock gains indicate further upward movement. He recommends a Buy for a target of Rs 4,790-4,820 with a stop loss at Rs 4,620.
ICICI Bank
CMP: Rs 1,307
READING: Rollovers at 97% to January and price gain of 1.6% in December suggest bullish buildup
RATIONALE: The uptick in open interest and gains in the stock during expiry suggest traders have carried forward their bullish positions, said Dhameja, adding traders can consider initiating fresh long positions in ICICI in the range of Rs 1,265- 1,307, with a price target of Rs 1,485. The stop loss could be at Rs 1,200
BEARISH BETS
Hindalco Industries
CMP: Rs 617
READING: 94% rollover with 3.3% decline in price suggest bearish buildup
RATIONALE: Shah, of SBICAP, says metal stocks have witnessed underperformance in the December Series and technical charts are pointing to further weakness. Hindalco has closed at a 35-week low, breaching its 200-DMA (daily moving average) and 20-day EMA (exponential moving average). Traders can sell Hindalco with a stop loss at Rs 638 for target of Rs 595-580.
