F&O Stock Strategy: How to trade Granules India and Biocon
Nifty50 and Sensex closed nearly 1% higher on Thursday, a day after posting their best one-day jump in over three years, as Narendra Modi is set to return to power for a third term after two key allies pledged their support to form a new government.
The 30-share BSE benchmark Sensex advanced 692 points, or 0.93%, to settle at 75,074. The broader NSE Nifty gained 201 points, or 0.89%, to end at 22,821.
In terms of FII and DII positioning, the former are net short on the index futures by nearly 3 lakh contracts while the latter are net long by 8,300 contracts. Retail investors seem to be optimistic as they are net long by over 2 lakh contracts in the index futures.
Analyst Sudeep Shah, Vice President and Head of Technical & Derivatives Research, at SBI Securities, suggests how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:
Granules India’s Trendline Breakout Sparks Optimism
The stock of Granules India Ltd has marked high of Rs 480 in the month of February 2024 and thereafter it has witnessed correction along with low volume. This correction was halted near its crucial 200-day EMA level, after which the stock began to rise again. On Thursday, it gave a downward-sloping trendline breakout on the daily scale. This breakout was accompanied by substantial trading volume, nearly four times of the 50-day average volume, indicating strong buying interest by market participants. The 50-day average volume stood at 11.82 lakh, while on Thursday, the stock
