F&O stocks in focus: How to trade SBI, Tata Consumer and Asian Paints?

Nifty was trading near the flatline on weekly expiry day after forming a small-bodied bearish candle on the daily chart. OI data indicates short covering in Nifty on Wednesday and short build-up in Nifty Bank.

"For the current weekly series, 19500 call has significant open interest, followed by 19600 strikes. On the put side, 19400 has significant open interest, followed by 19300 strike implying the zone of 19410-19390 will act as immediate support for the index. While, on the upside the level of 19475 will act as immediate resistance for the index. Any sustainable move above the level of 19475 will lead to further upside in the index," SBI Securities said.

We spoke to an analyst on how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data.


Analyst: Hariprasad Kizhakkethara, Livelong Wealth

Asian Paints
The stock was continuously moving in an ascending triangle pattern. Now it has taken support from the support level and gave a confirmation with the green bullish candle with good volumes.

The increase in Call contracts and decrease in Put contracts is also suggesting bullish sentiments. Target is Rs 3505.

Tata Consumer
The stock has given a rejection from the resistance trendline with good volumes. There is downside till Rs 883 as T1 price level and Rs 865 as T2 price level. OI data, with an increase in put contracts and decrease in call contracts, is suggesting bearish sentiments.

SBI
The stock was continuously facing strong rejection from the resistance zone of Rs 579-580 since Oct, 2023. Now it has given a breakout and retested with the green bullish candle with good volumes. Rs 585.60 is for Target 1 and Rs 595 is Target 2.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)