Derivative Strategy on Karnataka Bank by HDFC Securities

Derivative Strategy on Karnataka Bank by Devarsh Vakil & Nandish Shah - PCG Desk, HDFC Securities:
 
Buy Karnataka Bank November 160 call at Rs 3.80
Stop loss: Rs 3
Target: Rs 6.50
Lot size:  3800

 
Rationale:
After a muted movement in open interest till now in the current series, buildup of long positions started today where open interest rose by nearly 1%
 
Stock price has formed the strong base around current level of 157 where it is taking support around 200 DMA since last seven trading session.
 
 In the option segment, 160 call added over 1 lakh shares today (14% rise in open interest) suggesting higher possibility of sharp price from here.

 
Disclaimer: The analysts may have position in the stock mentioned above.