Business Standard
Web Exclusive

Derivative Strategy for Divi's Lab by HDFC Securities

Derivative strategy for Divi's Lab by Nandish Shah, Assistant Vice President, PCG, HDFC Securities.

Nandish Shah  |  Mumbai 

Markets, Buy, Sell, Stocks, Shares

Sell May Future @ Rs 1,634

Stop loss: Rs 1,660

Target: Rs 1,595

Rationale:

  • Short build up is seen in the Futures’, where we have seen rise in Open Interest with price falling by 3 per cent.
  • The stock has broken down on the daily chart, to close at its lowest level since February 26, on the daily charts with higher volumes
  • It is trading below its 5 and 20 day-SMA (simple moving average) indicating the stock is in downtrend for the short term.
  • Oscillators and momentum indicators like relative strength index (RSI) and moving average convergence divergence (MACD) are indicating weakness in the stock.

First Published: Fri, May 10 2019. 07:41 IST
RECOMMENDED FOR YOU