Manappuram Finance shares derivative data suggests a build-up of long position in Manappuram Finance, with the May series gaining a premium of half a percent.
To capture this bullish set up Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox recommends taking a Long position by buying call option.
Position: Buy Manappuram Finance May 30 190 CE
Entry Range: Rs 9 – 11,
Stop loss: Rs 2 as stop loss
Target: Rs 25
Alternatively Buy Manappuram May series futures in the range of 191 – 189 levels, holding Rs 182 as stop loss and aiming for Rs 205.
Technical View
"Technically, the stock is holding the support of 21-exponential moving average (EMA), post sideways formation. This support is assisting the stock to witness accumulation on the bullish side. A major move is expected to emerge over the 195 level. The price action is headed to absorb the selling pressure emerging over the 200-mark, " said Bagkar.
Derivative data
Bagkar highlights that the highest open interest can be seen in 200 CE and 180 PE, indicating an optimistic outlook, as the underlying trend supports a bullish tilt. In addition, substantial writing can be observed in 187.50 PE.
"The PCR value for the April series stands at 0.54, while the May series locates at 0.53. The overall outlook on OI front supports a positive bias. The rollover appears to be working in favour of bulls, as significant jump in the May series was seen on an upward trend, " explained Bagkar.
"Hence, we recommend taking a long position in Manappuram Futures in the range of Rs 191 – 189 levels, holding Rs 182 as stop loss and aiming for 205.
Option traders may opt for a long position in 190 CE in the range of Rs 9 – 11, holding Rs 2 as stop loss and aiming for Rs 25 for the May series, " he added.
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