F&O Strategy: Four Reasons Why Nandish Shah Recommends Buying an Indian Hotel




Indian hotel derivative strategy


Buy a future Indian hotel (expires June 30) at Rs 223.3

Batch size: 4022

Objective: Rs 232

Stop-Loss: Rs 217


Rationale:

We saw a long build up in Indian hotel futures where we saw a 3% increase in open interest (Prov) with a 4% price increase.

The stock’s short-term trend turned positive as it broke through its 5- and 20-day EMAs with higher volumes.

The stock price broke away from the descending trend line, adjoining the highs of 04-May 2022 and 01-Jun 2022.

The RSI oscillators on the daily chart (11) are sloping up and placed above 50, indicating the strength of the current uptrend.


Disclaimer: Nandish Shah is a Technical Research Analyst at HDFC Securities. He holds no position in the stock. Views are personal.

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