Derivatives strategy by HDFC Securities: Buy Tata Chemicals Jan Futures

Buy TATA CHEM JANUARY Future at Rs 679.50

Stop Loss Rs 670

Target Rs 700

Lot Size  900

Rationale:

1. We have seen Long build up in the Tata Chem Futures’ yesterday where we have seen a rise in Open Interest with the price rising by 1.6 per cent.
    
2. Stock price has broken out from the downward slopping trendline, adjoining the high of 26-Dec 2019 and 03 Jan 2020 on the daily chart.
    
3. Primary trend of the stock is positive where Stock price is trading above its 20, 50 and 200 day Simple moving averages.
    
4. Momentum Indicators and Oscillators like RSI and MACD have turned bullish on the daily charts.

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Disclaimer: Author is a Technical & Derivative Analyst at HDFC securities. Views expressed are his own.