Derivatives strategy on Manappuram Finance by HDFC Securities



Buy April Futures at Rs 103.5


Stop Loss: Rs 98 | Target: Rs 115 | Lot Size: 6000



Rationale:


— We have seen long roll-over in the Futures’ yesterday, where we saw 74 per cent roll over to the April series with rollover cost rising to nearly 2 per cent.


— The stock price closed above its 5-day Simple moving average (SMA) on Wednesday, the first time in the month of March, with higher volumes.


— The stock price formed multiple bottoms around 79 odd levels


— RSI Oscillator is showing strength in the stock


Disclaimer: Nandish Shah is a Technical & Derivative Analyst at HDFC securities. Views are personal.





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