Derivative Strategy pick on Apollo Tyres by HDFC Securities

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Derivative Strategy pick on Apollo Tyres by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC Securities:

 

Buy Apollo Tyres December 270 call at Rs 2.8

Stop loss- Rs 1.50

Target - Rs 5.50

 

Rationale:

 

We have seen long positions being built in Apollo Tyre futures today where we have seen open interest addition of 3% with price rise of 2%.

                    

During the current December series also, we have seen long build up where open interest rising by 25% with price moving up by 6%

                    

After taking strong support around 200 dma, Stock price has given breakout on the daily chart by closing above 260 levels.

                   

Tyre as a sector doing well since last few days and trend is likely to continue.

                   

Momentum Indicators and oscillators are Indicating strength in the stock 

 

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


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