Momentum in mid-& small-caps to fuel fresh derivatives plays

GE VERNOVA T&D INDIA

Change in Open Interest in June Series: 55.45% Change in price in June Series: 1%

RATIONALE: The sharp spike in open interest and price suggests a long buildup in the stock. “Technically, the stock has delivered a decisive breakout above the Rs 4,950 resistance zone and is sustaining near its lifetime high, indicating strong price acceptance at higher levels,” said Dhupesh Dhameja, derivatives analyst at Samco Securities. As long as the stock holds above Rs 4,850, the bullish structure remains intact with potential to move toward Rs 5,650, said Dhameja.

COMPUTER AGE MANAGEMENT (CAMS)
Change in Open Interest in June Series: 4.78% Change in price in June Series: 0.57%

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RATIONALE: CAMS is showing strength on the charts, shaping a constructive setup after a phase of healthy consolidation, said Dhameja.

“The stock continues to maintain a higher high–higher low structure and is comfortably trading above its rising 20-DMA, indicating that the primary trend remains fi rmly positive,” he said. “Price action near the Rs 780–800 zone suggests accumulation at higher levels rather than distribution, reflecting strong market participation.” Dhameja sees a potential upside of Rs 850, while Rs 750 remains a critical support level, below which the prevailing bullish structure would weaken.

SUZLON ENERGY
Change in Open Interest in June Series: 2.93% Change in price in June Series: 0.29%

RATIONALE: Following the stock decline from Rs 86 to 38 in the past 18 months, Suzlon has rebounded over 50% to Rs 57.75.

“At the current juncture, it is trading on the verge of a fresh breakout on the daily charts,” said Vipin Kumar, AVP – Derivatives and Technical Research at Globe Capital Market. “The recent surge in prices is well supported by a combination of long buildup and short covering in the last couple of trading sessions, alongside a strong rollover of 95%.” Kumar suggests traders buy its June futures in the Rs 55-57 range with a stop loss at Rs 52.5 for potential upside towards Rs 62-66.

GMR AIRPORTS
Change in Open Interest in June Series: 4.1% Change in price in June Series: 2.55%

RATIONALE: GMR Airports has delivered a decisive breakout above the Rs 98–99 resistance zone, accompanied by a sharp surge in volumes, indicating strong institutional participation, said Ajit Mishra, SVP- Research, Religare Broking.

“The stock is trading above its key short-, medium-, and long-term moving averages, reinforcing the bullish structure. After spending several months in a broad consolidation range, the recent move suggests the beginning of a fresh uptrend with improving momentum indicators and RSI turning higher from neutral territory,” he said. Mishra suggests buying with a target of Rs 109 and a stop loss at Rs 97.

SIEMENS
Change in Open Interest in June Series: 5.74% Change in price in June Series: -1.96%

RATIONALE: Kumar said that Siemens is well placed across multiple time frames, trading above both its short-term and long-term moving averages. “At the current juncture, it is on the verge of a fresh breakout from a two year-long congestion zone,” he said, suggesting adding the stock in the 3700–3800 range, with a stop loss at Rs 3540 for a price target of Rs 4200.

MAHINDRA & MAHINDRA
Change in Open Interest in June Series: 7.69% Change in price in June Series: -2.12%

RATIONALE: The price and open interest suggest a fresh short buildup. Mishra said M&M continues to remain under pressure, trading below its key moving averages. Traders may consider short positions with a target of Rs 2,910 and a stop loss at Rs 3,170, said Mishra.