1) Divis Lab (DIVLAB)
Buy Divis Laboratories August
futures in the range of
962-972. Target 1032. SL
932. Lot size : 250
Rationale:
Divis Laboratories has been consolidating near 940 levels from June on wards
However, in the recent up move from 940 levels the number of contracts in Divis
future reduced from 2028 to 1617 contracts (closure of 20%).
We believe this is short covering, which can Continue in the coming
sessions
It has also surpassed
the important 50 DMA of 965,
which should Continue in the coming sessions
2) ACC (ACC)
Sell ACC August futures
in the range of 1178-1188;
Target: 1115, SL 1218. Lot Size: 250
Rationale:
ACC has been moving in the range of 1150-1200 in this month. In the last
month, it witnessed six-month
high volumes on July 25 at 1200 leve
ls. Since then, it has been unable to move beyond this level
which indicates towards increasing weakness in the stock.
The number of contracts in ACC futures increased from
1840 to 2064 contracts (an increase of 12%) so far in the current
series. It seems to be short addition as the
stock is finding continuous selling pressure on upsides.
We recommend remaining short on any
intermediate pullback in the stock
Weekly view:
Nifty may remain range bound in the truncated week
Selling pressure likely to get aggravated below 5480.