Derivative Strategy on M&M by HDFC Securities

Derivative Strategy on M&M by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC Securities:
 
Buy M&M February at 800 call at Rs 23
Stop loss: Rs 15
Target: Rs 40
 
Rationale:
We have seen long positions being built in M&M futures today where we have seen open interest addition of 7% with price rise of 5%.
 
Stock price has given breakout on the daily, weekly and Monthly chart where it managed to close at all-time high.
 
M&M reported 32% rise in Auto sales for the month of January
 
Momentum Indicators and oscillators are Indicating