Derivatives strategy on Tata Motors by HDFC Securities

Derivative call by Nandish Shah, Senior Technical & Derivative Analyst, HDFC securities

Buy Tata Motors October 125 Call at Rs 7 | Stop loss Rs 4.5 | Target Rs 13

Rationale:

-- We have seen long build up in the Tata Motor futures’, where we have seen rise in Open Interest with price rising by 6 per cent.
 

-- Stock price formed bullish engulfing pattern on the daily chart
 

-- RSI oscillator has formed positive divergence on the daily and weekly chart
 

-- RSI oscillator has formed positive divergence on the daily and weekly chart.