Derivative strategy on BEML by HDFC Securities

Derivative strategy on Escorts by Nandish Shah, Senior Technical & Derivatives Analyst at HDFC Securities

Buy BEML December Future at Rs 789 

Stop loss: Rs 772  

Target: Rs 815

Rationale:

We have seen Long build up in BEML Futures’ yesterday where we have seen 6% Rise in Open Interest with the price rise of 5%.

The long build-up is seen in the December series also till now where Open Interest has risen above 24% with the price rising by 3%

Stock Price has given a breakout on the daily chart by closing above the resistance level of 772 with higher volumes to close at three month high.

The stock