Here is a derivative strategy for Cadila Health by Vinay Rajani of HDFC Sec

The stock price of Cadila Healthcare has broken out from the consolidation which held for last three weeks

BUY CADILA HEALTH JAN 510 CALL @ Rs 20
 

Lot Size: 2200
 

Stop loss of Rs 15
 

Target Rs 30

Rationale:

1. The stock price has broken out from the consolidation which held for last three weeks
    
2. Volumes during the breakout has seen sharp jump
    
3. The stock has seen long build of more than 5% in Derivative segment on 14th Jan 2021
    
4. Higher tops and higher bottoms on the daily and weekly charts
    
5. The price is also placed above all important moving average parameters
    
6. Indicators and oscillators have turned bullish
    
7. We recommend buying Cadila Healthcare Jan 510 Call at 20 for the upside target of 30, keeping Stoploss at 15.

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Disclaimer: Vinay Rajani is Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.