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4 reasons why HDFC Securities recommend buying Manappuram Finance futures

Derivative strategy for Manappuram Finance by Nandish Shah, Assistant Vice President, PCG, HDFC Securities.

Nandish Shah  |  Mumbai 

Trading Strategy

Buy June 140 Call @ Rs 4.5

Stop loss: Rs 3

Target: Rs 8

Rationale:

  • Long build up was seen in the Futures’ yesterday, where we have seen rise in Open Interest with price rising by 4 per cent.
  • After witnessing healthy correction during the first three days of the week, the stock resumed its uptrend again with rise in volumes.
  • The stock is trading above its 5, 20 and 200-day simple moving average (SMA) indicating it is in uptrend for all the time frames.
  • Oscillators and momentum indicators like relative strength index (RSI) and moving average convergence divergence (MACD) are showing strength in the stock on the daily and weekly charts.

First Published: Fri, May 31 2019. 06:31 IST
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