Option strategy on Tech Mahindra by HDFC Securities

Derivative Strategy by Devarsh Vakil & Nandish Shah - PCG Desk of HDFC securities:

Buy Tech Mahindra Sept Future at Rs 462

Stop loss: Rs 455

Target: Rs 475

Rationale:

• We have seen long positions being built in Tech Mahindra futures today where their open interest rising by 7% with price rise of 3%.
• It has given breakout on the daily chart by closing above the crucial resistance level of 450 with higher volumes.
• Price has also broken out from the long term downward sloping trendline, adjoining the high of 02-August-2015 and 23-Feb-2017.
• Momentum Indicators and oscillators are Indicating strength in the stocks