Top Stock Picks for August Expiry: Cash & Option Trading Strategies with Key Levels
By CapitalKeeper | Top Intraday Stock | Smart Trading Starts Here
Explore actionable trading insights on Grasim, Sequent, Apollo, Jaynecoind, and SRF options for August expiry. Get entry, stop loss, and target levels with market analysis.
ToTop Stock Picks to Watch: Options and Cash Opportunities for August Expiry
The Indian equity market continues to witness heightened volatility with earnings season, global cues, and FII activity shaping investor sentiment. Traders and investors are focusing on selective opportunities in both the cash and derivatives segments to optimize returns while managing risk effectively. In this blog, we analyze key stocks—Grasim, Sequent Scientific, Apollo, Jayant Agro Organics (Jaynecoind), and SRF options—from both a technical and positional standpoint, providing actionable insights for short-term traders and investors.
1. Grasim Industries (CMP: ₹2,766)
Option Strategy: August Expiry 2800 CE (CMP: ₹57)
- Watch Levels: 37–42
- Stop Loss: 30
- Potential Target: Upside potential post breakout
Grasim Industries remains one of the heavyweights in the Aditya Birla Group, with exposure to cement (via UltraTech), financial services, and textile chemicals. The stock has been consolidating in a broad range over the last few sessions, hovering just below the ₹2,800 psychological mark.
Technical Setup:
- The 2800 Call Option for August expiry is currently trading at ₹57. A significant retracement toward the ₹37–42 zone can provide a low-risk entry point for aggressive traders.
- Daily MACD has turned positive, and RSI remains supportive above 55, suggesting strength on dips.
- Immediate support lies at ₹2,720, while resistance is placed at ₹2,850. Sustained momentum above ₹2,800 can trigger a move toward ₹2,900–2,950 in the cash market.
Trade Idea:
For option buyers, waiting for premium cooling to 37–42 with a strict stop loss at 30 provides a favorable risk-reward setup. Upside targets can extend toward 70–80, depending on broader market cues and sector momentum.
2. Sequent Scientific (CMP: ₹180)
Cash Buy Recommendation
- Buy at CMP: ₹180
- Target: ₹199
- Stop Loss: ₹173
Sequent Scientific, a leading veterinary pharmaceutical company, has shown strong price-volume action over recent weeks. The stock is forming higher highs on the daily chart, indicating strong underlying momentum.
Why It’s Attractive Now:
- The pharma sector has seen renewed interest amid improving earnings visibility and defensive buying in uncertain markets.
- Sequent’s breakout above ₹175 was backed by robust volume, confirming institutional participation.
- On the weekly chart, a bullish crossover of the 20-EMA and 50-EMA further supports short-term bullishness.
Key Levels to Watch:
Immediate support is at ₹173; holding above this zone can lead the stock toward ₹199–205 over the next few sessions. Traders should maintain a trailing stop once the stock crosses ₹190.
3. Apollo (Likely Apollo Tyres) (CMP: ₹179)
Cash Buy Recommendation
- Buy at CMP: ₹179
- Target: ₹195
- Stop Loss: ₹164
Apollo has been consolidating for several weeks and recently signaled the start of a potential uptrend. Auto-ancillary stocks have been beneficiaries of robust domestic vehicle demand and steady export performance, making Apollo a candidate for short-term momentum plays.
Technical Observations:
- The stock is attempting to break out from a descending trendline that capped upside for the last month.
- Daily MACD shows a bullish crossover, and the RSI has rebounded from the oversold region (40–45 zone).
- Support zones at ₹164–165 coincide with the 200-day moving average, providing a strong base for swing traders.
Trade Setup:
Entering near ₹179 with a stop below ₹164 provides a clear 1:2 risk-reward ratio targeting ₹195 in the near term. A sustained close above ₹190 may open the gates for higher levels around ₹200.
4. Jayant Agro Organics (Jaynecoind) (CMP: ₹53.50)
Cash Buy Recommendation
- Buy at CMP: ₹53.50
- Target: ₹62
- Stop Loss: ₹49
Jaynecoind, part of the castor oil and derivatives segment, has displayed steady accumulation in recent sessions. The stock’s recent breakout above ₹50 signals renewed buying interest.
Technical Setup:
- Price action shows consistent higher lows, indicating accumulation at lower levels.
- The stock trades above its 20- and 50-day EMAs, suggesting trend alignment in favor of bulls.
- Volumes spiked significantly on the breakout day, hinting at participation from mid-sized institutions or high-conviction traders.
Trade Strategy:
Holding above ₹49 is critical for sustaining this bullish structure. Targets at ₹62 represent a 15% potential upside, attractive for positional swing traders.
5. SRF Limited – Options Play (28 Aug 24600 PE)
Put Option Buy Recommendation
- Entry Price: ₹72
- Target: ₹110
- Stop Loss: ₹48
SRF, a diversified chemicals major, has been range-bound after a sharp run-up earlier this year. The 24600 PE (likely linked to index option mislabel or broader derivative strategy involving SRF futures) signals a contrarian view expecting mild correction or hedge positioning.
Why This Put Option Looks Attractive:
- The stock recently hit resistance near the ₹25,000–25,200 equivalent level (scaled futures data).
- Daily stochastic and RSI indicators show overbought conditions, supporting a short-term correction view.
- Option premiums near ₹72 provide attractive leverage, with upside potential to ₹110–120 if correction unfolds.
Broader Market Context
The current market landscape is defined by sector rotation—where defensive plays like pharmaceuticals and selective auto stocks are gaining traction while broader indices remain range-bound. Nifty’s consolidation between 24,700–25,500 and Bank Nifty’s choppy moves underline the importance of stock-specific trades over index-heavy bets.
Key Themes Driving These Trades:
- Earnings Season: Mid-cap and specialty chemical firms are seeing strong re-ratings post results.
- Volume Breakouts: Stocks like Sequent and Jaynecoind are witnessing unusually high participation—a leading indicator of momentum.
- Options Strategies: Traders are deploying targeted call and put buys to capitalize on directional bias without heavy margin exposure.
- Support & Resistance Plays: All setups provided maintain tight stop losses, making them suitable for active traders in volatile conditions.
Risk Management Tips for These Trades
- Adhere Strictly to Stop Losses:
Volatility in mid-cap and derivative plays can lead to swift moves in either direction. A strict exit plan ensures capital protection. - Position Sizing:
Avoid over-leveraging in options trades. Allocating 2–3% of portfolio capital per trade is recommended for derivatives. - Trail Profits:
For cash stocks like Sequent, Apollo, and Jaynecoind, consider trailing stop losses higher as targets near to lock in gains while staying in the trend. - Stay Updated on News Flow:
Corporate announcements, results, or sector-specific policies (e.g., chemicals, auto) can impact momentum drastically.
Conclusion
This week’s opportunities span both cash and derivatives, offering flexibility for different trading styles. Grasim’s 2800 CE is ideal for those preferring option entries at cooled premiums, while Sequent, Apollo, and Jaynecoind present straightforward cash buys with clear targets and supports. The SRF 24600 PE trade adds a contrarian flavor for traders anticipating a pullback.
With indices consolidating, stock-specific trades remain the best way to generate alpha in the short term. As always, manage risk diligently, stay disciplined, and align trades with overall market trends.
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