Derivative strategy from HDFC Securities: Buy Grasim June Future

Views on derivative call by Nandish Shah, Senior Technical & Derivative Analyst, HDFC securities.

Buy GRASIM June Future @ Rs 904

Target: Rs 940 

Stop loss: Rs 890 

Rationale:

• Long build up was witnessed in the Grasim Futures on Thursday, where we saw sharp rise in open interest (OI) with price rising by 2 per cent.
• The stock gave bullish breakout from the upward slopping trendline, adjoining high of May 27 and June 13, 2019.
• It has formed multiple bottoms around 200-day SMA (simple moving average) during the current June series.
• Oscillators and Momentum Indicators like relative strength index (RSI) and moving average convergence divergence (MACD) are showing strength on the weekly charts.