Derivative strategy for Bajaj Finance by HDFC Securities

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

Buy Bajaj Finance Futures at Rs 3,150

Stop loss of Rs 3,110 

Target Rs 3,220

Rationale:

• Long  build-up is seen in the Bajaj Finance Futures, where we have seen 1.50 per cent rise in open interest with price moving up by 1.10 per cent;
• It has given breakout on the daily chart by surpassing the resistance of Rs 3,114 level to close at all-time high;
• Stock is trading above its 5,20,200 day SMA (simple moving average), indicating it is in uptrend.
• Oscillators and Mometum Indicators like RSI and MACD indicate strength in the stock.