Derivatives strategy on Amara Raja Batteries by Nandish Shah, Technical & Derivatives Analyst at HDFC Securities:
Stop loss of Rs 840
Target Rs 880
Rationale: We have seen Long positions being built in Amara Raja battery futures’ yesterday where we have seen Rise in Open Interest with Price rise of 1%.
During this week, Stock price has given bullish downward slopping trend line breakout on the daily chart by closing above the 835 levels with higher volumes.
Stock price is trading above its all-important short term and long term moving averages Indicating bullish trend for the short and medium term.
Momentum Indicators and Oscillators are Indicating strength in the stock for the short to medium term.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.