As benchmark indices hit a nine-month high in the last week of June, traders are looking to ride the bullish wave. A look at some of the stock futures that have seen higher-than-average rollovers to the July series and poised to move up further.
HPCL
CMP: Rs 439 Change in Open Interest in July Series: 9% Change in Price in July Series: 4.3%
- Decline in crude oil prices has supported oil marketing companies move higher, said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services.
- “The stock has seen meaningful long additions on Friday and has been making higher lows for the last 4 trading sessions,” he said.
- The stock also gave a consolidation breakout after 35 long weeks. Traders can buy the contracts with support at Rs 425 for an upside target towards Rs 465 levels.
ULTRATECH CEMENT
CMP: Rs 12,234 Change in Open Interest in July Series: -2.81% Change in Price in July Series: +1.96%
- The stock rose due to short covering on Friday, said Vipin Kumar, AVP, derivatives and technical research at Globe Capital Market.
- “On charts, it is trading on the verge of a fresh breakout from a year-long congestion zone at Rs 10,130-12,396. Considering its current chart structure and derivatives data, we expect the stock to move northward in near term and test Rs 13,500- Rs 14,000 levels,” he said. Kumar suggested traders buy its July futures with a stop loss at Rs 11,400.
POWER GRID CORP
CMP: `299 Change in Open Interest in July Series: -1% Change in Price in July Series: +1.60% Technically, it is well placed on multiple time frames and has bounced back sharply from its price support of `285, said Kumar. “All the parameters are indicating higher probability of positive momentum in this stock in the near term,” he said. Hence, we suggest traders to go long till it is holding above `284 levels and expect it to test `315-`325 in near term.”
INDRAPRASTHA GAS
CMP: Rs 213.85 Change in Open Interest in July Series: 13% Change in Price in July Series: 3%
- Indraprastha has given a consolidation breakout on daily and weekly charts with a decisive close above Rs 214 levels, said Taparia.
- “The stock has seen support-based buying with addition in option interests, which clearly indicates that longs are being added at current juncture for next move,” he said.
- Traders can buy Indraprastha contracts with support at Rs 207 for an upside target towards Rs 228.
APOLLO HOSPITALS
CMP: Rs 7,305 Change in Open Interest in July Series: 0.38% Change in Price in July Series: 2.71%
- Sudeep Shah, head, technical and derivative research at SBI Securities, said, on daily chart, stock has registered a breakout supported by robust volume participation— signalling strong buying interest.
- “This breakout not only validates the underlying strength but also marks shift in sentiment after consolidation,” he said.
- Shah recommends stock in the zone of Rs 7,320-Rs 7,280 with a stop loss of Rs 7,080, for a target of Rs 7,750.
HDFC LIFE INSURANCE
CMP: Rs 807.35 Change in Open Interest in July Series: -6.28% Change in Price in July Series: 0.34%
- Shah said the stock has recently given a ‘stage-2 cup pattern’ breakout on a daily scale.
- “This breakout is confirmed by robust volume. Currently, the stock is trading above its short and longterm moving averages, and these averages are edging higher, which is a bullish sign,” he said.
- He recommends accumulating the stock in the zone of `810-`800 with a stop loss of `780, for a target of `870 in the short term.