How to trade F&O stocks with high rollovers in May; check key levels here

Technical outlook on stocks with high rollover to May series: Keep a tab on these key support and resistance levels while trading in these F&O stocks.

Equity benchmark indices have witnessed a swift recovery from the recent lows as fears of escalation in the Israel-Iran conflict eased. 

Following the recent gains, the Sensex and the Nifty are less than 1 per cent from their respective peak at 75,124 and 22,776, hit earlier this month. The Nifty SmallCap index, meanwhile, has registered a new summit at 15,850.

Going ahead, the ongoing Lok Sabha elections, the US Fed policy meet on May 01 and Q4 earnings will dictate the market trend.

Meanwhile, in the derivatives segments, single-stock futures saw record rollovers to the May series, even as FIIs added short positions to the index futures and reduced net longs in stock futures. READ REPORT

Among individual stocks, Glenmark Pharma, Max Financial, SAIL, Cholamandalam Investment and Finance Company and SBI Life Insurance saw rollovers of over 90 per cent. That apart, Dixon Technologies, Abbott India, Tata Chemicals, Hindustan Aeronautics (HAL), Apollo Hospitals and Godrej Consumer Products were the other stocks with high rollovers to May series.

Here's a technical analysis on select stocks for likely support and resistance levels in the month of May.

Glenmark Pharma

Current Price: Rs 1,068

Support: Rs 1,024; Rs 995

Resistance: Rs 1,100; Rs 1,110

Key momentum oscillators of Glenmark Pharma stock are trading in fairly overbought zone, indicating that the upside may be limited in the near-term. The daily chart suggests likely resistance at Rs 1,100 levels, and support at Rs 1,024 in the form of 20-DMA (Daily Moving Average). CLICK HERE FOR THE CHART

The broader trend suggests that Glenmark stock may move in the range of Rs 995 - Rs 1,110 in the month of May.

Max Financial Services

Current Price: Rs 1,010

Support: Rs 985

Resistance: Rs 1,060; Rs 1,090; Rs 1,150

Max Financial Services stock is seen trading with negative bias for the fourth straight trading session. The stock is presently trading below the 20-DMA, which stands at Rs 1,022. Chart suggests that the stock seems to have strong support around Rs 985 levels. CLICK HERE FOR THE CHART

On the upside, the stock can potentially rally to Rs 1,150, with some resistance seen around Rs 1,060 and Rs 1,090 levels.

Abbott India

Current Price: Rs 25,889

Support: Rs 25,400; Rs 24,600

Resistance: Rs 26,000; Rs 26,450; Rs 27,550

Shares of Abbott India have declined 10 per cent in the last one month. The price-to-moving averages action is negative for the Abbott India stock as it trades below the 20-, 50- and 100-DMAs. However, key momentum oscillators have reached oversold zone on the daily chart. Daily and weekly charts show presence of support at Rs 25,400 and Rs 24,600 levels. CLICK HERE FOR THE CHART

Thus, the stock may attempt to recover some of its lost ground, and test the 50-DMA which stands at Rs 27,550 levels on the upside. Bias may turn favourable once the stock conquers the 100-DMA hurdle at Rs 26,000-mark.

Hindustan Aeronautics (HAL)

Current Price: Rs 4,003

Support: Rs 3,840

HAL stock has given a fresh breakout on the weekly chart. The near-term bias is expected to remain bullish as long as the stock sustains above Rs 3,840. The stock is trading in uncharted territory, and the momentum will continue to drive prices higher. CLICK HERE FOR THE CHART

However, in case, the stock dips below Rs 3,840, it may enter a corrective phase, with a sharp dip to Rs 3,600 possible.

Godrej Consumer Products

Current Price: Rs 2,592

Support: Rs 2,510; Rs 2,400

Resistance: Rs 2,700

Godrej Consumer Products stock is presently seen steadily rising on taking support around its 20-DMA at Rs 2,510 levels. The weekly chart suggests a likely trading range of Rs 2,350 - Rs 2,700 for the stock in the near-term. In the interim, support for the stock is seen at Rs 2,510 and Rs 2,400. CLICK HERE FOR THE CHART