Derivative strategy on McDowell Holdings by HDFC Securities

Derivative strategy on McDowell Holdings by Nandish Shah, Senior Technical & Derivatives Analyst at HDFC Securities:

Buy MCDOWELL HOLDINGS November Future at Rs 538 

Stop loss: Rs 525 

Target: Rs 560

Rationale:

We have seen Long roll-over in  Mcdowell  Futures’ to the November series yesterday where we have seen a rise in Open Interest with a Price rise of 2.7%.

The stock price has given a breakout on the daily charts with higher volumes where it managed to close at one month high.

The stock price is trading above its important short-term moving averages (5 and 20 day SMA) Indicating bullish trend for the short and medium term.

Momentum