Derivatives strategy by HDFC Securities: Buy Oct Future for Reliance Ind

Derivative call by Nandish Shah, Senior Technical & Derivative Analyst, HDFC Securities

Buy Reliance October Future @ Rs 1,304

Stop loss: Rs 1,280

Target: Rs 1,350

Rationale:

1) We have seen long build up in the Reliance futures’, where we have seen rise in Open Interest with price rising by 1.3 per cent.

2) Stock price has broken out on the daily chart by closing above the resistance level of 1293 level yesterday.

3)Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.

4) Stock price is trading above its 5, 20 and 200 day SMA, Indicating stock is in uptrend for short to medium term.