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Derivative Strategy
BUY
MCDOWELL NOV FUT (United Spirits)
Buy: Rs 910
Target: Rs 940
Stop Loss: Rs 890
RATIONALE:
Long Build up is seen on Tuesday as Open Interest has increased by 6 per cent (Prov) with price rising by 3 per cent. The stock price has broken out on the daily chart with higher volumes.
OPTIONS STRATEGY
GLENMARK Bull Call Spread (24-Nov-Expiry)
Buy 440 Call at Rs 8.9 & simultaneously sell 450 Call at Rs 4.90
Strategy Cost Rs 4 (Rs 4,600 per strategy)
Maximum profit Rs 6,900; if Glenmark closes at or above Rs 450 on 24-Nov expiry
RATIONALE:
We have seen long build up in the Glenmark futures during the November series till now where we have seen 5 per cent rise in Open Interest with price rising by 9 per cent. The Primary trend of the stock turned positive as it has closed above its 200 day EMA. RSI Oscillator is showing strength in the stock.
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
