The September derivatives series kicks off today with stock futures rollovers at 92 percent, consistent with the average rollovers of the last three series. Most frontline scrips saw rollover costs hover around 56-58 basis points, with an average day-on-day decrease of 1-2 basis points.
Benchmark indices were trading higher in afternoon trade on August 30, with Sensex was up 281 points or 0.34 percent at 82,416, and Nifty was up 91 points or 0.36 percent at 25,243. As many as 1,976 shares advanced, 1,345 shares declined, and 105 were unchanged.
As the series begins, Shilpa Rout, Derivative Analyst at Prabhudas Lilladher, recommends keeping a watch on these five FnO stocks for breakout moves:
City Union Bank | CMP Rs 173
View: City Union Bank is on the verge of breakout on the daily chart. The 50-EMA level of 163 will be the support for the short term. From a derivatives perspective, City Union Bank futures have seen a long buildup, and the daily VWAP level lies around 169. Option Chain suggests 170 CE and 180 CE writers have the highest OI, with almost 35 lakh OI; and 170 PE and 160 PE writers are holding maximum exposure for the September series. The immediate support is in the range of 150–160 levels, whereas the immediate resistance is at 180. A decisive close above 180 will see a rally toward 200- 220 levels.
HPCL | CMP Rs 416
View: Hindustan Petroleum Corp stock has given a breakout above Rs 400, and is trading above all the important cluster of moving averages. From the derivative front, Option Chain suggests 420 CE writers have the highest OI, with almost 25 lakh OI; and 400 PE and 410 PE writers are holding maximum exposure for the September series. HPCL futures witness a long buildup with well above its maximum pain levels, at 408, hence the overall trend looks positive.
BAJAJ FINANCE | CMP Rs 7,132
View: Bajaj Finance stock has given a trendline breakout. Its recent move above the important 200 DMA level of Rs 7,000 has improved the bias. On derivatives, Bajaj Finance has a long buildup, with max pain at Rs 7,000 and trading above daily VWAP at 6,850 levels. Option Chain suggests 7,200 CE and 7,500 CE writers have the highest OI; while 7,000 PE writers are holding maximum exposure for the September series.
ICICI BANK | CMP Rs 1,225
View: ICICI Bank has witnessed a decent spurt recently moving past the important 20-period MA and 50-period EMA zones and, after a short correction, has once again regained strength to indicate a higher bottom formation pattern on the daily chart, taking support near Rs 1,150. From the derivative front, Option Chain suggests 1,240 CE writers have the highest OI, with almost 17 lakh OI: and 1,200 PE writers are holding maximum exposure along with max pain for the September series.
LUPIN | CMP Rs 2,240
View: Lupin has maintained the strong uptrend, and with a series of higher lows and higher top formations, it has been making new highs with further rises anticipated. A close above Rs 2,130 on the monthly chart will confirm the big breakout after almost 10 years. Derivatives data show that the immediate support is at Rs 2,200, with the highest 2,200 PE writers holding maximum exposure. The immediate resistance is at Rs 2,300, as 2,200 and 2,300 CE writers have the highest OI, with almost 8 lakh OI.
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