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Derivative strategy on BEML by HDFC Securities

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

Nandish Shah  |  Mumbai 

SMEs, banks, foreign exchange, markets, forex, small and medium price industries,
SMEs at large do not understand forex and the concept of hedging, which banks often exploit. (Photo: iStock)

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

Buy December Future at Rs 789

Stop loss: Rs 772

Target: Rs 815

Rationale:

We have seen Long build up in 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 price is trading above its 5 and 20 day SMA, Indicating bullish trend for the short to medium term.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Fri, December 14 2018. 06:50 IST
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