The market has witnessed heavy selling today ,the week before the main event Budget 2022 lined-up.Next trading sessions could be equally volatile.The Nifty50 could witness strong moves in both directions as profit booking and short covering could intensify.Talking about the options data, strong Call writing is seen at 17,900 and 18,000 levels, indicating strong resistance for the week, whereas open interest in Put options indicates support at 17,500 followed by 17,000.We recommend a short strangle strategy where traders could write 17500 put and 17800 Call for a total premium of approximately 155 per pair and to cover the risk buy 17350 put and 17950 call for a total premium of 85 per pair.The maximum profit would be Rs. 3500 for the trade if Nifty ends the expiry week between 17500 and 17800.
Some stocks on which investors should keep an eye are:
L&T: There is multi-year revenue visibility from large order books and government is expected to increase road infrastructure spending in this year’s budget.The company’s order execution capabilities, effective capital utilization and reduced debt, all make it a good long-term performer.
Tata Power & Tata Motors: Renewable energy and electric vehicles could be an area of great focus in this year’s budget. The PM announced in Glasgow about net-zero carbon emissions by 2070. There might be some announcements about this.
Bharti Airtel: India has witnessed a revolution in the telecommunication sector over the past seven years which is expected to continue over the coming years.Government’s focus to bring 5G technology to India as soon as possible will give a good boost to the company. Price of data per Gigabyte has gone down from Rs. 200 in 2014 to Rs. 10 in recent years.
Based
on research stocks that can be bought in run up to the Union Budget 2022.
It recommended stocks ranging from banking, oil & gas, Power, infra and
Breweries and distilleries segments.The picks are: ICICI Bank, SBI,
HDFC Ltd, Reliance Industries, Thermax, Tata Power, L&T, BEL, Tata Motors,
Ultratech, M&M, DLF, Power Grid, HCG, Globus Spirits.
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