Derivative Strategy pick on Apollo Tyres by HDFC Securities

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.