Derivative Strategy on Cummins for March expiry as stock nears fresh high

Derivative Stock Strategy (Mar 2024 Expiry)
 

BUY Cummins India March 2900 CALL at Rs 50 | Stop loss: Rs 28 | Target: Rs 100
 

Rationale:
 

>> Stock price has broken out from the consolidation held for last four weeks.

>> Primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart.

>> Stock is on the verge of registering fresh all time high above 2,892.
 

>> Stock is placed above all important moving averages, indicating bullish trend on all time frames. 

>> Price rise is accompanied by rise in volumes and open interest.

 

>> Indicators and oscillators have been showing strength in the current uptrend. 

Disclaimer: Vinay Rajani is CMT, Senior Technical and Derivative Research Analyst at HDFC Securities. Views are his own.