As we near the expiry for the August month (29-August) derivatives, the stocks tend to get influenced by the open positions in the futures and options side of trade.
In general, stocks with high PCR (Put Call Ratio) above 1 tend to perform better owing to presence of significant Put writing at key Strike Prices. A high PCR denotes presence of higher open positions (read OI) in the Put Strikes compared to Calls for the underlying index/ stock.
In general, higher positions in Puts suggest that there are more open positions on the Put side versus Calls. However, higher OI Puts also indicates possible Put Writing by stronger hands, hence traders perceive limited downside for such stocks.
Among the 181 stocks traded in the futures & options segment – Granules India PCR stands at 1.93; indicating presence of 2 open positions in Puts for every OI on the Call Side. The stock, however, is ilLliquid in the options market and is also presently under F&O ban period.
That apart, MCX India, Colgate Palmolive, Trent, Dr.Reddy’s Laboratories, Glenmark Pharma, Voltas, Lupin, Tech Mahindra, Coromandel International and Balrampur Chini PCR also stand in excess of 1.
As such, here are the key levels that one should track on the following 5 stocks:
MCX India
Current Price: Rs 4,781
Upside Potential: 8.8%
Support: Rs 4,650; Rs 4,620; Rs 4,570
Resistance: Rs 4,900; Rs 4,970; Rs 5,030
MCX India PCR stands 1.35. The near-term bias for the sock is likely to remain bullish as long as it holds above Rs 4,620 – the higher-end of the Bollinger Bands on the weekly scale. On the upside, the stock needs to break above Rs 4,970 for fresh upward momentum.
Options data hint that the stock may face some resistance around Rs 4,900 – Rs 4,970 range. Further, in case, the stock breaks above Rs 5,030 levels – the counter may witness short-covering towards Rs 5,200 levels. Support on the downside is seen building around Rs 4,570 – Rs 4,650 levels.
Dr.Reddy’s Labs
Current Price: Rs 7,073
Upside Potential: 7%
Support: Rs 7,050; Rs 6,950; Rs 6,900
Resistance: Rs 7,170; Rs 7,255; Rs 7,390
Dr.Reddy’s Labs stock PCR stands at 1.18. The stock has gained up to 4.6 per cent in the last three trading sessions and is now seen trading above the higher-end of the Bollinger Bands on the daily scale.
The near-term bias for the stock is likely to remain positive as long as the stock holds above Rs 7,050 levels. On the upside, the stock can potentially rally to Rs 7,570 levels; with interim resistance seen at Rs 7,255 and Rs 7,390 levels.
As per the options data, significant support can be expected in the Rs 6,950 – Rs 6,900 range. On the upside, presence of significant OI at Rs 7,100 Call suggests possible resistance around Rs 7,170 levels and Rs 7,230.
Lupin
Current Price: Rs 2,116
Upside Potential: 5.9%
Support: Rs 2,075; Rs 2,055
Resistance: Rs 2,150; Rs 2,168; Rs 2,190
Lupin is seen trading with a bullish bias on the daily scale, with a favourable price-to-moving averages action. Chart suggests, the stock could see further strength on sustained trade above Rs 2,120 levels. On the upside, the stock can potentially jump to Rs 2,240 with interim resistance likely around Rs 2,168.
Lupin PCR stands at 1.18; the options chain shows notable buildup of positions at Rs 2,120 and Rs 2,180 Calls; indicating potential resistance at Rs 2,150 and Rs 2,190 levels. On the downside, notable OI (open interest) is seen added at the Rs 2,100 Put, thus suggesting potential support around Rs 2,075 levels; below which the stock can dip to Rs 2,055.
Tech Mahindra
Current Price: Rs 1,614
Upside Potential: 7.5%
Support: Rs 1,650; Rs 1,665; Rs 1,695
Resistance: Rs 1,585; Rs 1,570; Rs 1,535
Tech Mahindra is seen trading on a bouyant note on the a monthly scale. The overall bias for the stock is likely to remain positive as long as the stock holds above Rs 1,535 levels. On the upside, the stock can surge to Rs 1,735 with interim resistance likely around Rs 1,665 and Rs 1,695.
As per the options data, Tech Mahindra is likely to face resistance around Rs 1,650, owing to presence of significant Call Writing at Rs 1,640 Strike Price. On the downside, Rs 1,585 – Rs 1,570 could act as supports.
Trent
Current Price: Rs 6,775
Upside Potential: 4%
Support: Rs 6,670; Rs 6,300
Resistance: Rs 6,825; Rs 6,920; Rs 7,000
Trent PCR stands at 1.25; the stock is on a 5-week winning run and has gained over 32 per cent in this period. Similarly, the stock is on a 13-month winning streak, up 322 per cent since July 2023.
The long-term chart shows that the bias is likely to remain bullish as long as the stock trades above Rs 6,300 levels; with near support seen at Rs 6,670. Key momentum oscillators, however, are showing some signs of tiredness on the daily scale. Hence, the stock may trade sideways in the near-term. As such, the stock may face resistance around its recent high of Rs 6,825 and Rs 7,000-mark.
According to the options market, significant OI in Calls is seen at Rs 6,800, Rs 6,900 and Rs 7,000 Strikes; hinting at likely resistance around Rs 6,920 – Rs 7,050 levels. On the other hand, highest OI among Puts stands at Rs 6,000 Strike with notable buildup from Rs 6,300 – Rs 6,600 Strikes.
