Here's a derivative strategy on Alkem Lab by Nandish Shah of HDFC Sec

The stock price has already broken out on the daily chart to close at an all-time high with higher volumes

Buy ALKEM 3400 CALL at Rs 54

Stop loss: Rs 30

Target: Rs 100

Lot size: 200

Rationale:

-- We have seen long build-up in the ALKEM Futures, where we have seen 3 per cent(Prov) rise in the Open Interest with Price rising by 0.4 per cent.

-- The stock price has already broken out on the daily chart to close at all-time high with higher volumes

-- Plus DI is trading above Minus DI while ADX is placed above 25 and rising, indicating that the stock momentum in the current uptrend

-- Oscillators like RSI and MFI are placed above 60 and sloping upwards, indicating strength in the current uptrend.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.