F&O Call: Nandish Shah recommends to long Glenmark Pharma futures

The derivative analyst from HDFC Securities expects Glenmark Pharma January futues to test Rs 450 on the upside.

Derivative recommendation on Glenmark Pharma

Buy Glenmark Jan Future at Rs 436

Stop Loss: Rs 427

Target: Rs 450 

Lot Size: 1,450

Approx margin required: Rs 1,33,000

Rationale:

• We have seen long build up in the Glenmark Futures during the January series till now, where we have seen 2 per cent addition (Prov) in Open Interest with price rising by 3 per cent.
   
• Short term trend of the stock is positive as stock price is trading above its 11 and 20 day EMA.
   
• Primary trend of the stock is positive as stock price is trading above its 100 and 200 day EMA.
   
• Momentum Oscillators like RSI (11) is placed above 50 on the daily chart, Indicating strength in the current uptrend.

Note: It is advisable to book profit in the strategy when ROI exceeds 20 per cent.

Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.