4 reasons why HDFC Securities recommend buying Manappuram Finance futures

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

Buy Manappuram Finance June 140 Call @ Rs 4.5

Stop loss: Rs 3

Target: Rs 8

Rationale:

• Long build up was seen in the Manappuram Finance 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