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Reliance, Motherson Sumi among top trading ideas in June series

Sanam Mirchandani

, ET Bureau|

03 Jun 2021, 09:58 AM IST

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Bank, auto and oil stocks in limelight

Banking and finance, automobile and oil and gas companies are garnering most attention in the June derivatives series. Traders are adding bullish positions in state-owned banks while some metal stocks continue to enjoy bullish interest due to the ongoing rally in commodity prices. Auto stocks are in the limelight due to May sales numbers and corporate earnings. Meanwhile, Reliance Industries stood out in the derivatives segment as traders are covering short positions in the country’s most valuable company and expect it to reclaim record highs soon. ET takes a look at the top trading bets in the June futures segment.

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Canara Bank

Current Market Price: Rs 163.8

OI Change in June Series: 36%

Share Price Change in June Series: 6.6%

The stock has been garnering bullish interest as part of the rally in public sector banks of late. “It has been slowly moving upwards for the last seven weeks and PSU banks are also getting attraction. It has support at Rs 155, then it may head towards Rs 175-180 zones,” said Chandan Taparia, derivative analyst at Motilal Oswal.

Agencies

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Reliance Industries

Current Market Price: Rs 2,201.25

OI Change in June Series: -8%

Share Price Change in June Series: 11.4%

Analysts said high spreads in polymers have prompted short covering, pushing the stock up in recent days. “Reliance has seen long build-up and is making higher top - higher bottom on a daily scale. It is at the verge of fresh consolidation breakout on weekly scale,” said Taparia of Motilal Oswal. “Till it holds above Rs 2,120 zone, it can head towards Rs 2,350 levels,” said Taparia.

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Motherson Sumi

Current Market Price: Rs 269.10

OI Change in June Series: 12.4%

Share Price Change in June Series: 15.4%

Majority of the gains in Motherson Sumi came on Wednesday as the company reported a 289% year-on-year rise in its consolidated net profit to Rs 713.6 crore for the quarter ended March, which was sharply higher than analysts’ estimates. The stock can rise to Rs 285-290.

Agencies

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Amara Raja Batteries

Current Market Price: Rs 741.35

OI Change in June Series: 23.4%

Share Price Change in June Series: 0.5%

Sentiment in Amara Raja stock has been weak of late after car battery maker Clarios sold stake in the company recently. Palviya said one should avoid the stock. Shorting the stock could be risky as the stock has already fallen 30% from the recent high of around Rs 1,025, said Palviya. He said the stock may fall further if it slips below Rs 720 level.

Agencies

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Ashok Leyland

Current Price: Rs 124.1

OI Change in June Series: 16.15%

Share Price Change in June Series: -1.8%

Traders have been taking bearish bets on Ashok Leyland. Part of the reason is that the Hinduja Group flagship firm has reported a decline of 62% in total vehicle sales in May. Rajesh Palviya, head-technicals and derivatives at Axis Securities, said the stock is likely to move in the broad range of Rs 110 - Rs 130 in the near term. If it breaks Rs 118 level, it will slip to Rs 108, said Palviya. If the stock continues to hold above Rs 118, the near-term trend will be positive and if it crosses Rs 128 then we may see rally till Rs 140, said Palviya.