Derivative strategy on MCX October future by HDFC Securities

Derivative strategy on MCX October future by Vinay Rajani, Technical Research Analyst, HDFC Securities:

BUY MCX OCTOBER FUTURE @ Rs 747

Stop loss: Rs 722

Target: Rs 785

Rationale:

1. The stock broke out from the consolidation by rising more than 7% with a significant jump in volumes

2. Oscillators have exited from the oversold zone, indicating a short-term trend reversal.

3. Long positions being built in MCX Futures’ yesterday, where we have seen a rise in Open Interest by 7%.

4. The stock price has surpassed 20 days EMA resistance on the closing basis

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