Derivative Strategy on Pidilite Industries by HDFC Securities

Derivative Strategy on Pidilite Industries by Devarsh Vakil & Nandish Shah - PCG Desk at HDFC Securities:
 
Pidilite Industries August Future – BUY
CMP – Rs 831
Stop loss - Rs 820
Target - Rs 850
 
Rationale:
 
1. We have seen long positions being built in Pidite futures today where open interest rises by around 18% with higher future volumes.
 
2. Stock price has given breakout on the daily chart by closing above the downward sloping trend line resistance of 825 levels.
 
3. Momentum Indicators and oscillators are suggesting strength in the stock.