Derivative strategy on Bajaj Auto by HDFC securities

Buy BAJAJ AUTO FEBRUARY FUTURE AT Rs 2,819 

Stop loss: Rs 2,790

Target: Rs 2,875

Rationale:

  • Long  build up is seen in Bajaj Auto Futures’ yesterday, where we have seen 1% rise  in Open Interest with Price rise of 1%
  • After  a running correcting of nearly 5% from the recent high, stock price reversed northward yesterday from the support level of 200 day SMA to close at four day high.
  • Momentum  Indicators  and  Oscillators like RSI and MACD is showing strength in the stock.
  • Stock price is trading above its 5,20 and 200 day simple moving average Indicating bullish trend for the short to medium term.


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