September F&O Series: CDSL, Adani Power among 5 stocks offering bullish trading bets

The start of the September derivatives series has created several bullish and bearish trading opportunities, with rollover trends, changes in open interest, and price action signalling potential sharp moves in some stocks. Here is a look at the key bets.

BULLISH BETS

CENTRAL DEPOSITORY SERVICES (INDIA)- CDSL

Chg in OI in Sept Series: 8%
Chg in Price in Sept Series: 0.8%

RATIONALE: Post multi-week consolidation, the stock has regained momentum on the upside, said Amit Trivedi, SVP, Institutional Equities Research at Yes Securities. Trivedi said in the August series the stock has seen a long build up with a rollover of 95%. “Further stability above Rs 1400 is likely to lift the stock above its July high, potentially towards Rs 1520. Levels of Rs 1365 should be considered as revised support and risk management level for bullish set-up,” he said.

ADANI POWER

Chg in OI in Sept Series: 2.3%

Chg in Price in Sept Series: -1.3%
RATIONALE: On Thursday, the stock witnessed a bullish breakout from more than a month-long congestion range on the daily charts, accompanied by a significant rise in volumes, said Vipin Kumar, AVP – Derivatives and Technical Research at Globe Capital Market. “The breakout was well supported by a strong long buildup of around 6% and robust positive rollovers of 95% on expiry day,” he said. Considering the current chart structure and derivatives data, Kumar recommends taking long positions in the Rs 211–Rs 213 range for a price target of Rs 230–Rs 235 with a stop loss at Rs 200.

PERSISTENT SYSTEMS

Chg in OI in Sept Series: -1.8%

Chg in Price in Sept Series: 4.4%

RATIONALE: The stock has witnessed short-covering in the September series and is trading above its key short- and medium-term moving averages, including 20-, 50-, 100- and 200 day EMAs, highlighting a robust long-term bullish structure, said Sudeep Shah, Head – Technical and Derivative Research, SBI Securities. “With positive traction around midcap IT stocks, any dip towards Rs 5,850 would act as a buying opportunity and can be bought with a stop-loss at Rs 5,780 for a target of Rs 6,150 6,200,” said Shah.

COMPUTER AGE MANAGEMENT SERVICES (CAMS)

Chg in OI in Sept Series: -1.9%

Chg in Price in Sept Series: 3.35%

RATIONALE: Kumar said CAMS has formed a fresh buying pivot on daily charts, accompanied by a significant rise in volume near the lower band price support of its five-month congestion range. “On the derivatives front, it shed around 2% in open interest due to short covering, “ he said. Kumar suggests adding long positions in CAMS in the Rs 755 Rs 765 range, with a stop loss at Rs 735 for a price target of Rs 800.

HINDUSTAN ZINC

Chg in OI in Sept Series: 3.9%

Chg in Price in Sept Series: 4.8%

RATIONALE: The rise in its futures open interest alongside strong gains in price indicates fresh long accumulation in the September Series, along with strengthening technical structure, said Shah of SBI Securities. “The stock has given a symmetrical triangle break-out on weekly charts, and hence can be bought on dips with a stop loss at Rs 607 for a target of Rs 645 655 on the upside,” he said.

Read more: FPIs net buyers for 2nd month; Rs 30,919 crore inflow in August: is selling spree easing?

BEARISH BETS

GODREJ CONSUMER PRODUCTS

Chg in OI in Sept Series: -3%

Chg in Price in Sept Series: -2%

RATIONALE: Breaking a key support zone, the stock has seen a higher-than-average short build-up in the August series, with an 80% rollover, said Trivedi of Yes Securities. “Recoveries in the recent past remained short-lived, finding stiff resistance near Rs 950; decline thereafter ensures influence of resistance and internal weakness. Inability to hold current levels is likely to drag the stock further lower till the Rs 815 zone,” he said. He recommends selling for a target of Rs 815, with a stop-loss at Rs 960.