F&O Stock Strategy: How to trade Indus Towers, Zydus Lifesciences today

Recent trading sessions have experienced significant volatility in the Indian markets, driven by concerns related to the budget and geopolitical developments in the Red Sea region. However, these corrections also offer a great opportunity for investors to enter good-quality stocks.
In light of the prevailing conditions, three stocks have formed a strong setup on the technical charts presenting an appealing risk-to-reward ratio.

Analyst: Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy

Zydus Lifesciences – All-Time High Breakout

The Pharma sector has been in a great bull run since May 2023. The level of 700 was a strong resistance for Zydus Life which the stock broke this month. Thereafter, the stock consolidated for about 20 days and has been holding firmly above this level.

The last two days have witnessed a breakout of this consolidation zone with increased volume. The RSI for the stock is 72 indicating a strong bullish momentum.

The option chain for the stock shows call buying at strike prices of 770, 780, and 800. Put writing is also seen at strike prices below the At-The-Money (ATM) level.

Thus, it is recommended to buy Zydus Lifesciences for a target of 820. The stop loss for the stock would be 718 on a closing basis.

Agencies

Indus Towers – Inverted head and Shoulder Pattern Breakout

Indus Towers had been in a bearish trend for a long time. But lately, the stock is seeing action on the upside. The level of 225 was a strong resistance for Indus Towers and the stock has been trading below it for over two years. On Wednesday, the stock broke this level with a good volume.The daily RSI for Indus Towers is 68 indicating momentum in the stock. The price action also suggests a trend reversal for the stock.

On the derivative front, buying is seen on the call side and huge writing is on the put side for the February series.

Thus, Indus Towers can be bought for a target price of 250 keeping a stop loss at 218 on a closing basis.

Agencies

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