Technical Analysis

Go long on Max Financial

| | Updated on: Jul 16, 2017
image caption

Shares of Max Financial Services (₹600) rules at a crucial level. A close above ₹622 will re-confirm the positive outlook and ensure that the stock of Max Financial is heading towards ₹730. The stock finds immediate support at ₹567 and a close below ₹500 will change the outlook to negative. However, the chance of the stock heading towards new heights appears bright.

F&O pointers: The counter on Friday shed 1.75 lakh shares (or 3.5 per cent) open interest positions along with the rise in underlying share price. This indicates that a lot of traders preferred to book profits. Though trading in options is not very active, a little cue available suggests that Max Financial could face support at ₹580.

Strategy: Traders can consider going long on Max Financial Services futures. While stop-loss can be placed at ₹567 initially, it can be shifted to ₹600 if the stock opens and sustains the level on Monday. The initial target is ₹628. Traders with risk taking ability can aim for ₹655 (if willing to play thw waiting game).

Alternatively, traders can also buy ₹600-call option that closed at ₹15.55 on Friday. Consider exiting the position if the option premium falls to ₹5.5 or ₹30. The market lot for Max Financial Services contracts is 1,000.

Follow-up: Tata Global Beverages achieved the target.

Published on January 11, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you