F&O call: Here's why you should buy SBI Put option for March series

The stock is placed below all important moving averages, which indicates a bearish trend on all time frames, says technical analyst from HDFC Securities

Derivative Stock Strategy (Mar 2023 Expiry)

BUY SBIN March 510 PUT at Rs 6.55
Stop loss: Rs 2
Target: Rs 20

Rationale

• On March 23, the stock witnessed short build up with OI rising 4 per cent, with a 2 per cent price fall
   
• The stock price broke below consolidation, which it held for the past five trading sessions
   
• The stock is placed below all important moving averages, which indicates a bearish trend on all time frames 

Note: We recommend buying SBIN March 510 PUT at CMP, for the upside target of 20, keeping stop-loss at 2.

(Vinay Rajani, Senior Technical and Derivative Research Analyst at HDFC securities. Views expressed are personal).