Option Picks For the Week

has formed a Doji candle on its weekly charts ending the week with a loss of around 0.43 percent. The index tumbled after posting a record high above 14,750 level. However, global cues are neutral and supporting the market to sustain in the higher zone. Nifty spot is trading around 14,370 and Nifty Jan Fut is trading with the premium of 8.25 basis points. The PCR of Nifty is at 1.93 and max call and put open interest is seen at 14,700 and 14,000 respectively.

Most active call of Nifty is 14,600 with the OI of 50,628 contracts and put of 14,400 with 25,085 contracts. Stocks that have seen most active call options is TATAMOTORS 300 CE and ASHOKLEY 130 CE and put option is SBI (NS:) 290 PE and VEDL 160 PE.

Here are few top picks for the week:

1. BUY:  Hindustan Unilever Ltd. (NS:) FEB 2400 CE (105 – 107)

TARGET: 149
STOP LOSS:  74

This stock has formed a flag pattern on its daily charts, a breakout of which above 2400 would add more interest of traders and trading above its important moving averages. The PCR is 0.6 which indicates a bullish outlook for the stock. The Delta of 2400 CE is 0.60 and the change in OI is 37.23%. We recommend initiating buy position at 105-107 with a stop loss of Rs.74 and a target of Rs.149.

2. BUY: TCS (NS:) FEB 3350 CE (111 – 113)

TARGET: 149.50
STOP LOSS:  84.90

This stock has formed a flag kind of pattern on its daily charts and trading above its important moving averages. Any breakout above the level of 3350 would add further upward momentum to the stock. The PCR is 1.1 which can be considered bullish in nature with an increase in open interest. Delta of 3350 CE is 0.47 with 93.33% change in OI.  Therefore, we recommend initiating buy position at 111-113 with a stop loss of Rs. 84.90 and a target of Rs. 149.50.

Disclaimer: The analyst does not hold a position in any of the stocks mentioned above.


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