Derivatives strategy on Manappuram Finance by HDFC Securities

Derivatives call on Bank Of Baroda by Nandish Shah, Technical & Derivatives Analyst, HDFC Securities:

Buy Manappuram Finance May 120 call at Rs 5.50

Stop loss: Rs 4

Target: Rs 9

Rationale: We have seen long positions being built in Manappuram Finance futures today where we have seen a rise in open interest with the price rise of 2%. In the option segment,  130  call added 3.72 lakh shares in open interest today suggesting higher possibility of sharp price from here. The stock price has given breakout on the daily chart where it managed to close above 5 and 20 day SMA with a sharp rise in Volumes. Momentum  Indicators like  RSI is showing strength in the stock for short to medium term.