RBI policy and GST boost fuel interest in consumption, financial services stocks – News Air Insight

Shares in the consumption sector, as well as some financial services companies are expected to remain in focus in the coming weeks, due to the GST boost, as well as RBI’s policy changes announced in the latest MPC meeting. Here’s a look at stocks which saw above-average rollovers to the October series, along with analyst recommendations.

United Spirits

CMP: Rs 1,347 Change in Open Interest: -0.38% Change in Price (October Series): 1.75%

The stock has been consolidating in a tight range of Rs 1,280-1,365 range for over two months, and is currently trading on the verge of bullish breakout from the upper band of the range, said Vipin Kumar, assistant vice president of derivatives and technical research at Globe Capital Market.

“This is supported by over 2% increase in open Interest as long buildup across expiries. Considering its current chart structure and derivatives data, we anticipate a potential northward move in the near-term,” he said. Kumar suggests buying October futures in Rs 1,345-1,365 range, with a target of Rs 1,450-1,500, with stop loss at Rs 1,280.

Aditya Birla Capital
CMP: Rs 301 Change in Open Interest: 5.04% Change in Price: 2.96% Traders can look to initiate fresh long positions near Rs 299, with opportunities to add on dips toward Rs 294, said Dhupesh Dhameja, derivatives research analyst at Samco Securities. The stock offers an upside potential toward Rs 322 and the bullish outlook remains valid as long as the price holds above Rs 275. “The stock has been showcasing remarkable relative strength despite the volatility in the benchmark indices, consistently scaling fresh all-time highs,” said Dhameja. “Price structure highlights sustained strength, with a steady pattern of higher highs and higher lows, indicative of a wellestablished uptrend.”

Axis Bank
CMP: Rs 1,161 Change in Open Interest: 0.3% Change in Price: 2.63%

The stock closed 2.47% higher at Rs 1,160 on Wednesday, rebounding from the 20-day EMA zone of Rs 1,120–1,125, said Sudeep Shah, head – technical and derivatives research desk at SBI Securities.

“The stock trades above key moving averages and mid-Bollinger band, signaling strength. Importantly, the Nifty Private Bank/Nifty ratio has broken above the upper Bollinger band, highlighting strong relative outperformance of private banks,” he said. Shah suggests traders can accumulate the stock in Rs 1,160–1,170 zone with stop loss at Rs 1,130, and its near-term upside could be seen towards Rs 1,250.

Shriram Finance
CMP: Rs 648 Change in Open Interest: 2.87% Change in Price: 5.16%

Shares of Shriram Finance moved up over 5% on Wednesday on an ET report that Mitsubishi UFG Financial Group (MUFG) is in advanced talks to take a 20% stake in the company. The stock has been consolidating in a broad range for the last couple of months; and in the very short term the stock has taken support from the lower end of the range and started forming higher tops and higher bottoms, said Somil Mehta, head of alternate research, Mirae Asset ShareKhan.

“On daily chart, a small, inverted head & shoulder pattern has broken on the upside and the momentum indicator has given a positive crossover,” he said. “The stock is expected to target Rs 710 with a reversal at Rs 615.”

Adani Green Energy
CMP: Rs 1,066 Change in Open Interest: 3.24% Change in Price: 3.83%

Adani Green shares are up over 14% in the past month. “Adani Green added more than 3% open interest as a fresh long buildup and also formed a fresh buying pivot right at the gap support levels, which was created while rising on Sebi’s clearance in the Hindenburg case,” said Kumar.

“Based on its robust combination of chart structure and derivatives data, we project a near-term up-move in its stock prices.” Kumar suggests buying October futures in Rs 1,070-1,055 range, with a target of Rs 1,140-1,200 and stop loss at Rs 1,010.

APL Apollo Tubes
CMP: Rs 1,739 Change in Open Interest: 3.27% Change in Price: 3.14%

After emerging from a brief phase of consolidation following its recent corrective decline, the stock has resumed its broader bullish trajectory, said Dhameja. “On the technical front, it continues to trade well above all key moving averages, with 10, 20, and 50 DEMAs on daily and weekly charts as reliable support zones, thereby strengthening the bullish case,” he said. Fresh long positions may be initiated around Rs 1,731, with scope to add on dips toward Rs 1,715, for a target of Rs 1,945. The bullish outlook stays intact as long as price remains above Rs 1,600.