F&O Stock Strategy: How to trade HCL Tech, Canara Bank today
We spoke to an analyst on how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:
Analyst: Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, SBI Securities.
HCL Technologies Rebounds Strongly from Support Zone, Signalling Potential Upside
On Tuesday, the stock of HCL Technologies took support near the 13-day EMA level and it coincides with the 50% Fibonacci retracement level of its prior upward rally (Rs 1551-1696). Thereafter it witnessed a sharp upside rally and ended above Rs 1680 level with a gain of over 3%. On a daily scale, it has formed sizeable bullish candle along with above its 50-day average volume.
The stock has demonstrated remarkable outperformance compared to frontline indices. Notably, the Mansfield Relative Strength indicator has consistently remained above the zero line for the past 90 trading sessions, indicating sustained outperformance. As the stock is trading near an all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the stock. The daily RSI has taken support near the 60 mark and witnessed a sharp rebound, which is a bullish sign as per RSI range shift rules.
The derivative data is also supporting the overall bullish chart structure. The February future has surged by 2.69% and cumulative open interest of current, next and far series has surged nearly 3%. This indicates an overall long build-up. Examining the option chain, it's
