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Derivative strategy on Federal Bank by HDFC Securities

Derivative strategy on Federal Bank by Nandish Shah, Assistant Vice President, PCG, HDFC Securities.

Nandish Shah  |  Mumbai 

For a liquid secondary market

Buy March 85 call option at Rs 3

Stop loss of Rs 2.10

Target Rs 5

Rationale:

  • Long build-up is seen in the Futures’ where we have seen rise in Open Interest with moving up 3%
  • Stock price closed above its 20 and 200-day simple moving average (SMA) yesterday, indicating a positive trend for the short to medium term.
  • After forming double bottom around 78-odd levels last week, Federal Bank has risen over 7% with higher volumes, indicating a bullish trend reversal.
  • Mometum Indicators and Oscillators like RSI and MACD is showing strength in the stock.

First Published: Fri, March 01 2019. 06:58 IST
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