Derivative Strategy on Bharat Forge
by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC securities:
Bharat Forge August Future – BUY
CMP – Rs 1,142
STOP LOSS - Rs 1,120
TARGET - Rs 1,180
futures open interest currently stands at three month high. This higher open interest coupled with the rise in price indicates accumulation of long positions by the strong hands.
We have seen higher rollover to the August series with the positive cost of carry. Stock is making higher top higher bottom formation on the charts.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.