Derivative strategy on Jain Irrigation by HDFC Securities

Derivative strategy on Jain Irrigation by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC Securities

 

Buy Jain Irrigation November 110 call at Rs 4.70

Stop loss: Rs 3

Target: Rs 8

 

Rationale:

We have seen long positions being built in Jain Irrigation futures today where their open interest rising by over 5%.

 

Stock price has given breakout on the daily chart by closing above the downward sloping trendline resistane of 105 level.

 

In the option segment, 110 call added over 4 lakh shares (25% rise in open interest) and 115 call added over 2 lakh shares(16% rise in open interest), suggesting higher possibility of sharp price from here.

 

Momentum Indicators and oscillators are Indicating strength in the stocks

 

Disclaimer: The analysts may have position in the stock mentioned above.