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Derivatives strategy by Nandish Shah of HDFC Sec: Buy Siemens Dec Futures

Stock price has broken out on the daily chart by closing above the resistance level of 1,520 with higher volumes

Nandish Shah  |  Mumbai 

Derivative Trading
Derivative Trading

Buy DECEMBER Future at Rs 1,531

Stop Loss: Rs 1,505


Target: Rs 1,575

Lot Size: 550.

Rationale:

  1. We have seen Long build up in the Futures where we have seen rise in Open Interest with price rising by 1.5 per cent.
  2. Stock price has broken out on the daily chart by closing above the resistance level of 1,520 with higher volumes
  3. Stock price is trading above its 5, 20 and 200 day SMA, indicating positive trend for all the time frames
  4. Stock price has formed multiple bottoms around 1,450 levels
  5. Momentum Indicators and Oscillators like RSI and MACD have turned bullish on the daily charts.

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Disclaimer: Nandish Shah is a Technical Analyst with HDFC securities. Views expressed are his own.

First Published: Fri, December 20 2019. 08:17 IST
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