United Spirits Ltd, is trading near the strong support zone and we are expecting MCDOWELLS-N stock to bounce towards 719 level in 2 or 3 days. Stock is extremely oversold looking at 15 days RSI we see it at 27 level, hence a bounce at this support level is more likely to come out of oversold region and we have target for MCDOWELLS-N stock at 719 and then 726 levels. We will advice traders to buy MCDOWELLS-N December futures near 694 level with a strict stop loss near 683 zone for targets as 719 level and extended target as 726 level. Daily chart suggests stock is loosing its downward momentum so this is another solid buying opportunity near strong support level. F&O data is suggesting the open interest has added 83,000 shares in open interest today i.e 8% jump, we believe long positions were added. Risk rewards ratio for this trade setup is looking very attractive hence traders are advised to add long positions in this stock for a very short term view of 3 to 4 days. Also, one thing to note, support level is at 78.6% Fibonacci level and we believe it to hold the stock strongly above that support. All the major technical indicators are showing stock is extremely oversold and bounce is expected in near term.
Nifty is likely to consolidate before any down move, hence this stock will outperform nifty futures in near term, with 5% upside from current levels in Mcdowells-N stock.
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