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Shriram Finance Limited

BUY 26 MAY 920 PUT Entry Range 10 - 14 Target Range 30 Stop Loss 5

Rationale

• SHRIRAMFIN continued to witness selling pressure and formed a subdued candle on the daily chart, indicating weakness near the 940-950 resistance zone. Sustained trading below this hurdle keeps the bearish bias intact for the near term with the immediate downside support at the 890-880 zone.

• On the technical front, the prices are hovering below its 100-DEMA, while momentum indicators remain weak. The RSI is placed near 40 mark, reflecting fading buying strength and lack of bullish momentum at current levels.

• On the momentum front, the MACD indicator continues to trade in the negative territory with a bearish crossover, suggesting that downside pressure may persist in the coming sessions.

• As long as the stock remains below the 940 mark, one can capitalize on this bearish structure with the buying in the ATM put option.

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SEBI Registration number is INZ00017433