Options Trading: Vinay Rajani recommends buying Federal Bank Put

The technical analyst from HDFC Securities reommends buying Federal Bank 85 Put with a stop loss at Re 1.

BUY Federal Bank May 85 PUT @ Rs 2.45, Stop loss of Rs 1, Target Rs 4.5

Rationale:

• Stock fell more than 5% with rising volumes on 12th May 2022
   
• Stock has witnessed short buildup in Open Interest
   
• Stock price has breached the crucial support of previous swing low placed at 86
   
• Indicators and Oscillators have been showing weakness

We recommend buying Federal Bank May 85 PUT at CMP, for an upside target of 4.50, keeping Stoploss at Rs 1.

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