F&O Strategy: Four reasons why Nandish Shah recommends buying Indian Hotel

Derivative Strategy at the Indian Hotel

Buy Indian Hotel (30-June Expiry) Future at Rs 223.3

Lot Size: 4022

Target: Rs

Stop Loss: Rs

Rationales:

We have seen long build up in the Indian Hotel futures where we have seen 3 per cent addition in open interest (Prov) with price rising by 4 per cent.

The short term trend of the stock turned positive as it crossed its 5- and 20-day EMAs with higher volumes.

Stock price has broken out of the downward sloping trendline, adjoining the highs of 04-May 2022 and 01-June 2022.

RSI Oscillators on the daily chart (11) are sloping upwards and placed above 50, indicating strength in the current uptrend.

Disclaimer: Nandish Shah is a Technical Research Analyst at HDFC Securities. He does not hold any position in the stock. Views are personal.

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