Derivative strategy on JSW Steel by HDFC securities

Derivative strategy on JSW Steel by Nandish Shah, Assistant Vice President, PCG, HDFC Securities.

Buy JSW STEEL FEBRUARY Future at Rs 282.50

Stop loss: Rs 276

Target: Rs 295

Rationale:

-- Long build up in JSW Steel Futures’ yesterday, where we have seen a rise in Open Interest with a price rise of 3.50%.

-- After forming a double bottom at 257 odd levels earlier this week, stock price reversed northward to close above its 5 and 20 day SMA with higher volumes.

-- Momentum Indicators and Oscillators like RSI and MACD are showing strength in the stock.

-- Metal as a sector seems to be bottomed out and looking good for the short term.