Derivative strategy on NMDC by HDFC Securities for today

Derivative strategy on NMDC by Nandish Shah, Technical & Derivatives Analyst, HDFC Securities:

Buy NMDC September 120 CALL @ Rs 2.50
Stop loss: Rs 1.20
Target: Rs 5

Rationale: We have seen Long positions being built in NMDC Futures’ yesterday where Open Interest rises by 2% with Price moving up by 2%.

The stock price has given a breakout on the daily chart by closing above 114 levels with higher volumes

The stock price is trading above its important short-term moving averages (5  and  20 day SMA) Indicating a bullish trend for the short and medium term

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.