Today we have another trade setup for a stock that was in downtrend, its HDIL. We have seen this stock making the series of lower tops and lower bottom, Today what we have seen is it was trading at 62.65 level which is very strong support for this stock (Low that was made on 3 March 2009). So we expect this stock to bounce from that support level towards 71 zone. Our advice is to accumulate HDIL December future contract near 63.2 level for upside targets as 68 and then 71 level. Also stop loss for this trade must be placed at 61.2, Risk reward ratio is quite attractive here. Thing to note is we are taking position against the trend as well as fundamentals, hence tight stop loss is necessary. Taking a look at F&O open interest data we have seen high rollover in this stock also HDIL December futures were trading at premium to spot price. Technical indicators are showing the stock is highly oversold and some bounce is expected in near term. Any recovery in Nifty futures will trigger bounce in HDIL stock also.
HDIL futures December Series: Buy HDIL Dec Future contract near 63.2 level for positional targets as 68 and then 71 levels. Stop loss orders must be placed just near 61.2 zone. Large buy orders must be sitting at 62.65 level in HDIL stock.