Derivative strategy on Motherson Sumi by HDFC Securities

Derivative strategy on Motherson Sumi by Vinay Rajani - PCG Desk, HDFC Securities:
 
Buy MothersonSumi March 320 CALL at Rs 8
Stop loss: Rs 5
Target: Rs 16
 
Rationale: We have seen long positions being built in Motherson Sumi futures on 8th March, where we have seen rise of more than 4% in open interest with price rise of 2%.

Positive divergence is observed on the daily charts, where price making lower bottoms and RSI oscillator making higher bottoms, indicating probable bullish reversal.

Stock price found support around weekly historical multiple bottoms placed around 300.