Derivatives strategy on Manappuram Finance by HDFC Securities

Derivatives strategy on Manappuram Finance by Nandish Shah, Technical & Derivatives Analyst at HDFC Securities:

Buy Manappuram Finance August 110

Call at Rs 5.50

Stop loss of Rs 3

Target at Rs 10

Rationale: We  have seen Long positions being built in Manappuram Finance futures’  during  the August series till now where we have seen 11% Rise in Open Interest with Price rise of 6%

Stock price has given breakout on the daily chart yesterday by closing above the previous resistance of 108 levels with higher volumes

Stock  price has managed to close above 200 day SMA yesterday, first time after 30-May-2018

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.