Trade Idea of The Day - TVS Motor Company Ltd Target Rs.125 - Religare Broking Ltd
TVS Motor Company Ltd
BUY 25 AUG 4100 CALL SELL 25 AUG 4300 CALL Entry Range (Outflow) 56 – 64 Target 125 Stop Loss 30
Rationale
1. On the daily chart, TVSMOTOR has witnessed a robust bullish momentum with a sustained breakout above the crucial 4000 mark. From the technical prospective, the stock prices continues to form a higher high higher low structure, suggests a bullish continuation pattern for the coming sessions
2. On the derivatives front, Call unwinding at the 3,900 strike reflects strong bullish momentum, while fresh Put writing at the 4,000 strike highlights an immediate downside cushion.
3. The momentum indicator, RSI remains firm near the 70 mark, while the MACD histogram continues to traded in a bullish territory, which supports the ongoing uptrend. As long as the stock sustains above the 4000 mark, the positive bias is likely to remain intact with potential upside towards the 4250-4300 zone.
4. Considering the favourable technical setup and supportive derivatives positioning, traders may adopt a buy-on-dips approach. A Bull Call Spread strategy remains prudent for the August series to limit the downside risk.
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