Friday, 20 April 2018

Derivatives strategy on SAIL April Futures by HDFC Securities

Derivatives strategy on SAIL April Futures by HDFC Securities

Derivatives call on SAIL April Futures by Nandish Shah, Technical & Derivatives Analyst, HDFC Securities:

Buy SAIL April 80 CALL at Rs 2
Stop loss: Rs 1
Target: Rs 3.50

Rationale: Short covering is seen in the SAIL Futures today where we have seen 3% reduction in open interest with price rise of 4.5%. Stock Price has given breakout on the daily chart today where it closes above the resistance level of 80 odd levels with rise in Volumes. The stock price is trading above its short term and long term moving averages, indicating bullish trend for the short to medium term. Momentum Indicators and Oscillators are Indicating strength in the stock. Metal as a sector is doing well and looking good for the short term.

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