Derivative Strategy on South Indian Bank by HDFC securities

Derivative Strategy on South Indian Bank by Devarsh Vakil & Nandish Shah - PCG Desk of HDFC securities:
 
Buy South Indian Bank October 27.5 call
CMP: Rs 1.70
Stop loss: Rs 1.
Target: Rs 3.50

Lot size:  33141
 
Rationale:

1.      We have seen long positions being built in South Indian Bank futures today.
 
2.      It has reached to the support of upward slopping trendline, adjoining the low of 29-March and 11-August 2017.
 
3.      In the option segment, 27.5, 30 and 32.5 call added 2.65, 9.3 and 4 lakh shares in open interest, suggesting higher possibility of sharp price from here.

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