The latest analysis and commentary by stock market guru Shubham Agarwal, CEO and head of research, Quantsapp Advisory on what is moving the markets today. Check out his top stock recommendations.
He spoke at length about Larsen and Toubro (L&T), Hindustan Unilever Ltd (HUL) and Infosys.
“The first pick will be on L&T and if you look at the momentum of L&T, after the four-months consolidation now we can see that there is a breakout that has happened and this is a kind of a medium-term breakout and if you look at the options data, 1,500 is a very heavy put writing area and from there we have witnessed a sharp bounce back which suggests that we might see some more upside going forward. So a bull call spread on L&T can be initiated. 1,540 call has to be bought and a 1,580 call can be sold. Next spread is Rs 15, the target for this spread will be Rs 28 and a stop loss can be maintained at Rs 8,” he said.
“The second call will be a buy call in HUL and if you look at the sector as well, the sectoral performance has been quite encouraging and HUL is now about to approach its all-time high and that can happen very often that we might see a breakout happening above the previous highs. So again a bull call spread on HUL can be initiated. 1,840 Call can be bought, 1,880 call can be sold. The net spread is Rs 15.50, the target for this spread will be Rs 30 and a stop loss can be maintained at Rs 8. Lastly, a buy call on Infosys. If you look at the IT sector, since yesterday there have been a lots of longs that have been built and Infosys has broken out after one month consolidation. So 750 call option can be bought on Infosys for a target of Rs 16 and a stop loss of Rs 6,” he added.Disclaimer:
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