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Option strategy on Tech Mahindra by HDFC Securities

Derivative Strategy by Devarsh Vakil & Nandish Shah - PCG Desk of HDFC securities

Tech Mahindra accepts senior workers’ pay cut offer

premium

The offer, which was made by employees in the ranks of senior vice-president and above, came after Tech Mahindra’s uninspiring performance in the past few quarters

Devarsh Vakil Nandish Shah Mumbai

Last Updated : Sep 22 2017 | 8:18 AM IST

Derivative Strategy by Devarsh Vakil & Nandish Shah - PCG Desk of HDFC securities:

Buy Tech Mahindra Sept Future at Rs 462

Stop loss: Rs 455

Target: Rs 475

Rationale:

We have seen long positions being built in Tech Mahindra futures today where their open interest rising by 7% with price rise of 3%.
It has given breakout on the daily chart by closing above the crucial resistance level of 450 with higher volumes.
Price has also broken out from the long term downward sloping trendline, adjoining the high of 02-August-2015 and 23-Feb-2017.
Momentum Indicators and oscillators are Indicating strength in the stocks