Derivative strategy on Bajaj Auto by HDFC securities

Derivative strategy on Bajaj Auto by Nandish Shah, Assistant Vice President, PCG, 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.