Friday, 3 November 2017

Derivative strategy on Jain Irrigation by HDFC Securities

markets, stocks, sensex, nifty, bse, nse

STOCK MARKET - Derivative strategy on Jain Irrigation by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC Securities
Buy Jain Irrigation November 110 call at Rs 4.70
Stop loss: Rs 3
Target: Rs 8

Rationale:
We have seen long positions being built in Jain Irrigation futures today where their open interest rising by over 5%.

Stock price has given breakout on the daily chart by closing above the downward sloping trendline resistane of 105 level.

In the option segment, 110 call added over 4 lakh shares (25% rise in open interest) and 115 call added over 2 lakh shares(16% rise in open interest), suggesting higher possibility of sharp price from here.

Momentum Indicators and oscillators are Indicating strength in the stocks

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