F&O | Technical indicators signal sell for Dixon Technologies, buy for Concor: ICICI Securities

PSU Container Corporation of India (Concor) and contract manufacturer Dixon Technologies are expected to be the traders’ radar this week.

Dixon Technologies was one of the most bought midcap shares by domestic mutual funds in October. According to data compiled by Nuvama Alternative & Quantitative Research, mutual funds purchased 11 lakh shares of Dixon Tech during the month. The options data indicates a short build-up in the Dixon Technologies’ scrip for the November expiry series.

ICICI Securities weekly recommendation

Dixon Technologies

The brokerage advises selling Dixon Technologies futures in the November expiry series in the Rs 5,245-5,265 range, with a target of Rs 4,900 and a stop-loss at Rs 5,461.

According to Raj Deepak Singh, Head of Derivatives at ICICI Securities, “Dixon has underperformed the broader markets over the past few days. It experienced a sharp rally in the October series but failed to surpass its hurdle level of 5,600 and reverted again. The stock has also witnessed fresh short additions from higher levels over the past week. “

Historical price movement of Dixon Technologies scrip | Source: ICICI Securities

On the options front, the stock has seen significant Call writing at near ATM and OTM strikes. With expectations of limited upside, Singh believes the stock will continue its underperformance and move towards 4,900 in the coming sessions.

Container Corporation of India

The brokerage favours buying Concor November futures series in the Rs 730-733 range, with a target of Rs 776 and a stop-loss at Rs 703.

Historical price movement of Container Corporation scrip | Source: ICICI Securities

“The stock is relatively outperforming the market and has shown extreme resilience in the recent ongoing choppiness. It is trading above the major support level of Rs 700 in the current series, along with decent delivery volumes. On the options front, it is attempting to cross the Call bases, above which we expect a short-covering move” said Singh.

The stock may find further momentum above Rs 750 on the back of fresh long additions and could head towards Rs 775-780 in the coming sessions.

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