Derivatives Strategy - Positional Option - ICICI Securities

Recommendation

Buy L&T Finance June 65 Call at Rs. 3.4-4.4
Target: Rs. 11
Stop loss: Rs. 1.1
Time frame: Till June expiry

Rationale

L&T Finance has started performing on the back of addition of open interest. In this series, the OI has increased from 4000 contracts to 4600 contracts in the futures segment, thus pushing the stock higher.

The OI in the last series was almost flat. It started the current series with further lower positions. However it has shown a trajectory of increasing OI in this series, which provides hopes of some recovery in the short-term.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_DerivativesStrategy_LTFinance_Jun20.pdf

Shares of L&T FINANCE HOLDINGS LTD. was last trading in BSE at Rs.61.6 as compared to the previous close of Rs. 63.1. The total number of shares traded during the day was 1902421 in over 5948 trades.

The stock hit an intraday high of Rs. 65.4 and intraday low of 61.35. The net turnover during the day was Rs. 120687520.

Source : Equity Bulls

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