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

The technical analyst from HDFC Securities recommends buying Indian Hotel June future for a target of Rs 232.

Derivative Strategy on Indian Hotel

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

Lot Size: 4022

Target: Rs 232

Stop Loss: Rs 217

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.

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

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

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

Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.