Saturday, April 25, 2020

Derivatives strategies - Long Asian Paints Future

Long Asian Paints (ASIPAI) April future in the range of 1805-1815.
Target: 1895;
Stop Loss: 1755

Consumption stocks have shown significant resilience and witnessed buying at lower levels despite negative market sentiments. Asian Paints is one such stock which has moved near its Feb levels while Nifty is still hovering around 9000 levels. The open interest in the stock has declined sharply at inception of the series. Despite gradual build up of positions, the total OI is relatively low ion the stock. We believe long positions should be formed in the stock and it is likely to move towards Feb highs in the coming sessions. The highest Put base for the stock is placed at ATM 1800 strike suggesting expectations of limited downsides.


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