Derivatives strategy on Tata Steel by HDFC Securities

Derivative strategy on Tata Steel by Nandish Shah, Technical & Derivatives Analyst, HDFC Securities:

Buy TATA STEEL OCTOBER 620 CALL @ Rs 22

Stop loss of Rs 15

Target Rs 35

Rationale:

• We have seen Long roll over in Tata Steel Futures’ where 92% positions being rolled over to the October series with Tata steel gained 0.5% in the September series.

• The stock price has been resilient in the recent market fall and likely to outperform.

• Metal as a sector looking strong on the charts

• The stock price is trading above its important short-term moving averages (5 and 20 day SMA) Indicating bullish trend for the short and medium term.

Disclaimer: The analyst may have a position in the stock mentioned above.