Derivatives strategy on Voltas by HDFC Securities

Derivative call by Nandish Shah, Technical & Derivative Analyst, HDFC securities.

Buy Voltas October 700 Call at Rs 8.40

Stop Loss: Rs 5

Target Price: Rs 15

Rationale:

• Accumulation of Long build up is seen in the Voltas Futures’ during the series till now, where we have seen rise in the Open Interest with price is consolidating near current levels.
   
• Stock price has already given breakout on the monthly chart. After consolidation for the October series till now, Stock price is on the verge of Breakout.
   
• Stock price is trading above its 5,20 and 200 day SMA Indicating positive trend for the short to medium term.
   
• Oscillator and momentum Indicators like RSI and MACD has been showing strength on the weekly charts.