Derivative Strategy on M&M by HDFC Securities

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

 

Buy M&M February at 800 call at Rs 23

Stop loss: Rs 15

Target: Rs 40

 

Rationale:

We have seen long positions being built in M&M futures today where we have seen open interest addition of 7% with price rise of 5%.

 

Stock price has given breakout on the daily, weekly and Monthly chart where it managed to close at all-time high.

 

M&M reported 32% rise in Auto sales for the month of January

 

Momentum Indicators and oscillators are Indicating strength in the M&M for the coming days

 

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


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