The Nifty ended August series with a loss of one percent at 9,917.90 due to geopolitical tensions and disappointing earnings. However, the index opened September series on a positive note.
Aditya Birla Money feels the Nifty trading range for first few days of September series would be 9,650-10,050.
"Nifty front PCR open interest (OI) opened at 1.33 (well above than last month 1.26 last 4-month average 1.12) with 10,000 CE having highest OI across CE options as 29 lakh Shares (8.53 lakh shares added on last Thursday), implying CE writers are convinced Nifty will find 1st resistance around 10,050. On support side, PE OI is at 9,800 and 9,700 PE with 31 and 38 lakh shares, respectively, (Thursday saw addition of 8 and 12 lakh Shares), implying 9,700-9,750 will be crucial support zone if breaches next strong support 9,650," it explained.
Here are six large cap and six mid cap picks:-
Top large cap picks
Maruti's rollovers were higher than average at 84 percent (last month 83 percent) with cost improve than 3-month average. Technically, the stock has formed strong support Rs 7,500 band. One should buy on dips till its holds above Rs 7,522, for target of Rs 7,900.
Overall auto sector saw increase rollovers with cost positive. Aditya Birla Money expects the sector to be market performer.
Asian Paints saw rollovers of 80 percent (higher than six month average) with cost improve, implying long rolled. Technically the stock has become break out Rs 1,160-1,165.
One should trade with positive bias till it trades above Rs 1,145 and expects to test further resistance levels of Rs 1,204-1,210 levels.
Hindustan Unilever has seen above average rollovers of 89 percent with cost improve. The stock has given break out above Rs 1,205-1,210 stiff resistance. Buy on dips till it stays above Rs 1,183 and expect target Rs 1,275-1,280.
Vedanta saw above average rollovers at 83 percent (increase MoM), with cost positive supportive buying at lower levels. Buy on dips if trades above Rs 298 and expect to test next resistance levels of Rs 320-325 levels.
BPCL saw well above average rollovers at 87 percent with cost improve and long position rolled. The stock is trying to form a strong bottom around Rs 500-502 i.e. weekly support. Till it stays above Rs 502, buy on dips and expect stock to test higher levels Rs 555-560 levels.
Top midcap picks
Escorts rollovers at 90 percent were well ahead of 3-month average (with cost positive), implying longs rolled. The stock is trying to rebound from strong bottom Rs 616-620. Till holds above Rs 620, one should buy on dips. The stock is looking good to test Rs 685-690 levels.
PTC witnessed above average rollover of 85 percent, with cost improve, implying long rolls. The stock has formed strong bottom at Rs 114-115. If it continues to trade above these levels then one expect a target of Rs 125-126 levels.
GSFC rollovers were well above average at 91 percent (2nd MoM rollovers increase with cost improve), implying supportive buying at lower level, with stock has given break out above Rs 141-142 levels. Till its holds above Rs 141, one can buy on dips, for a target of Rs 148-149.
Overall, Aditya Birla Money expects the fertiliser sector to be a market performer.
LIC Housing Finance has witnessed above average rollover of 85 percent with cost increase and long rolled break out above resistance in weekly charts above Rs 664-665. Till it remains above Rs 658, one can buy on dips and expects to test resistance levels of Rs 693-695.
Divis Laboratories' rollovers at 91 percent improved MoM (6-month average). Technically, the stock has rebounded from strong bottom Rs 680-685 zone in weekly charts. Till it remains above support Rs 675, one can buy on dips for a target of Rs 770-775.
Indiabulls Real Estate's 93 percent positions rolled, better than 6-month average. However, MoM increase with rollover cost improved, suggesting long roll. The stock has rebounded from support Rs 226-227 (weekly support). If it continues to trade above crucial support, then buy on dips and expect it to test higher levels Rs 246-247 (stoploss Rs 225) i.e. next stiff resistance.
Century saw in line with average rollovers of 93 percent (cost flat to positive.) Long rollovers were seen with stock trying to rebound from strong support levels Rs 1,175-1,180 (weekly support). Till it sustains above Rs 1,175 will ensure the stock test Rs 1,295-1,300 where next stiff resistance may come in, buy on dips.
Disclaimer: The views and investment tips expressed by research houses on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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