Top five momentum stocks you can bet on for May series – Economic Times

This post was originally published on this site

Traders are betting on momentum stocks that have seen strong rollover or carry forward of futures positions to the May series from April in the derivatives market.

These stocks have also seen strong price appreciation during the last one month, and traders are anticipating the gains to continue this month also.

Options data indicate that market participants have taken bullish positions as volume concentration is seen at higher strike prices. ET brings top five momentum stocks for May series.

Active Call Option Strike Rs 75, 80 Active Put Option Strike Rs 67.5, 70

The company is expected to benefit from the government’s focus on power and infrastructure sector, along with growth revival in the housing finance and micro finance segments. Traders are betting on L&T Finance’s aspiration to enter the banking space.

May Futures Price: Rs 72.55 Rollover to May Series: 87.3% Gain in April Series: 10.4% Total OI*: 407,04,000

Active Call Option Strike Rs 540; 570 Active Put Option Strike Rs 500, 520

Traders are betting on a normal monsoon. Its strong product pipeline in Latin America is likely to boost its future earnings. The agrochemical firm, reported higher than expected 25% increase in consolidated net profit at Rs 552 crore on Saturday.

May Futures Price: Rs 542.50 Rollover to May Series: 94.9% Gain in April Series: 8.4% Total OI*: 61,76,000

Active Call Option Strike Rs 60, 65 Active Put Option Strike Rs 55, 57.50

Stock continues to see strong momentum post 18% surge in April series after restructuring announcement. Analysts see increase in order book position with improvement in domestic T&D market and pick up in railway spending and expansion.

May Futures Price: Rs 57.90 Rollover to May Series: 82.8% Gain in April Series: 18.2% Total OI*: 181,89,000

Active Call Option Strike Rs 75, 80 Active Put Option Strike Rs 60, 70

The continued strength in domestic steel prices is making traders bullish about the sector, while company’s proposed plan to sell its 1,000 megawatt (MW) power plant in Chhattisgarh to JSW Energy is adding to positive sentiments.

May Futures Price: Rs 69.85 Rollover to May Series: 89.7% Gain in April Series: 24.4% Total OI*: 392,63,000

Active Call Option Strike Rs 640, 660 Active Put Option Strike Rs 600, 620

The company is expected to announce its March quarter results on May 3, analysts are expecting earnings to beat expectations. Traders are betting on a possible restructuring plan as the company operates in different business segments such as textile, cement, and paper manufacturing.

May Futures Price: Rs 642.15 Rollover to May Series: 87.8% Gain in April Series: 17.5% Total OI*: 61,60,800