F&O Strategy: Nandish Shah recommends going long on M&M Finance

The technical analyst from HDFC Securities recommends buying M&M Finance June future with a stop at Rs 183 for a target of Rs 194.

Derivative Strategy on M&M Finance

Buy M&M Finance (30-June Expiry) Future at Rs 187.2

Lot Size 4000

Target: Rs 194

Stop Loss: Rs 183

Rationales:

• We have seen long build up in the M&M Finance futures where we have seen 4 per cent addition in Open Interest (Prov) with price rising by 0.5 per cent.
   
• Short term trend of the M&M Finance is positive as it is trading above its important short-term moving averages.
   
• Stock price is on the verge of breaking out from the downward sloping trendline, adjoining the highs of 09-Nov 2021 and 29-April 2022.
   
• Momentum Oscillators like RSI(11) and MFI(10) are sloping upwards and placed above 60, 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.