Muhurat Picks: Motilal Oswal picks 5 stocks for Diwali - Know target price, stop loss and buy duration
Planning to invest and earn some good money this Diwali? Brokerage firm Motilal Oswal suggests these 5 scrips for top returns viz. State Bank of India (SBI), L&T, Trent, Bata India, and Tech Mahindra. Check the target prices, stop loss, buy duration, and other details.
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
State Bank of India: Buy| Target Rs 600| Stop Loss: Rs 450| Duration 2-3 months
Rollover has been intact at 93% from the last 2 months which indicates longs are upright in the stock with more than 10% price increase in the October series. One can look for Bull Call Spread opportunity here by buying 510 Call and selling 540 Call of the November series at a net premium cost of around 10 points. The target price is Rs 600, stop loss is Rs 450, and buy duration will be 2-3 months.
L&T: Buy| Target Rs 2200| Stop Loss: Rs 1600| Duration 2-3 months
Maximum Call OI is seen at 1900 and highest Call writers unwinding in this strike is making it a comfortable upside. Short covering seen in the October series so far will drive the stock to higher zones. One can initiate Bull Call Spread by buying 1820 Call and selling 2000 Call of the November series at a net premium cost of around 40 points. The target price is Rs 2200, stop loss is Rs 1600, and buy duration will be 2-3 months.
Trent: Buy| Target Rs 1250| Stop Loss: Rs 950| Duration 2-3 months
The new entrant in the F&O world and good welcome by addition in OI by more than 36% indicating addition of long positions. The target price is Rs 1250, stop loss is Rs 950, and buy duration will be 2-3 months.
Bata India: Buy| Target Rs 2450| Stop Loss: Rs 1800| Duration 2-3 months
Short covering is seen with an increase in the price by almost 18% in the October series and increase in implied volatility indicating bulls to be in action. The target price is Rs 2,450, stop loss is Rs 1800, and buy duration will be 2-3 months.
Tech Mahindra: Buy| Target Rs 1850| Stop Loss: Rs 1350| Duration 2-3 months
OI shedding by almost 9% with increase in price which suggests shorts are covering their position and rollover of 97% in the previous series indicating positive sentiment and strong hands in the counter. The target price is Rs 1850, stop loss is Rs 1350, and buy duration will be 2-3 months.