Derivative strategy on Torrent Pharma by Nandish Shah, Senior Technical & Derivatives Analyst at HDFC Securities
Buy Torrent Pharma December Future at Rs 1806
Stop Loss: Rs 1780
Target: Rs 1850
We have seen Long build up in Torrent Power Futures’ where we have seen 10% Rise in Open Interest with the price rise of 1%.
The stock price has given downward sloping trend line breakout, adjoining highs of 07- September and 03- December on the daily chart.
Stock price is trading above its 5, 20 and 200 day SMA, Indicating bullish trend for the short to medium term.
Torrent Pharma is one of the outperformers amongst the Pharma stocks, where it gained by 27% till date in the CY18 as against the 8% fall in the Nifty Pharma Index. Derivative and Technical Indicators indicating this outperformance to continue for the coming days.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.