The ABB India stock rallied in sync with the bull run in the market on December 4, showing a robust breakout supported by significant volumes in over-the-counter buys.
At 12:30pm, ABB Futures December series traded 6 percent higher, up by 250 points.
"Following a decisive breakout above 4,500, ABB Futures now demonstrates a stellar move towards the 4,700 levels. According to the option chain, the stock is poised to test levels of 4800/5000 zones now. The stock also registers aggressive intraday Open Interest (OI) addition of 3.6 percent, indicating conviction in the upward move," Shilpa Rout, derivatives lead analyst at Prabhudas Lilladher Pvt Ltd, said.
Options data suggests that heavy call writing can be seen at 4,700 and 4,800 levels which shall act as a crucial resistance today.
Brokerage views
Motilal Oswal Financial Services, in its capital goods sector thematic report, has given a 'buy' rating to ABB India. "The capital goods sector has started benefiting from the government’s initiatives towards capex spending, revival in select pockets of the private sector, increased spending in the GCC region, and favourable raw material prices. The government has already set the ball rolling across key areas such as transmission, clean energy, railways, Make in India, PLI and defense indigenization until FY30, providing a strong addressable market for capital goods companies. Thus, we believe that the entire capex scenario is falling into place for the next decade, which will augur well for capital goods companies. We thus recommend a selective stance on the sector and recommend a 'buy' on ABB India," it said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
