F&O Stock Strategy: How to trade SAIL, Bharti Airtel today

economictimes.indiatimes.com:

We spoke to Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, SBI Securities, on how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:

SAIL gives trendline breakout
Steel Authority of India’s (SAIL) stock has given a horizontal trendline breakout on the daily scale. This breakout was accompanied by robust trading volume, signalling substantial market enthusiasm. Moreover, the stock showcased a sizable bullish candle, reinforcing the optimistic momentum in the recent price action.

At present, the stock is positioned above both its short and long-term moving averages, both of which are on an upward trajectory and align favourably.

This alignment indicates a robust and sustained trend. Additionally, the daily Relative Strength Index (RSI) is situated in the highly bullish zone according to RSI range shift rules. Furthermore, the daily Moving Average Convergence Divergence (MACD) remains bullish, residing above both its zero line and signal line.

On the derivative front, the January series future has surged by 7.60 per cent. The cumulative OI of current, next and far series has surged by nearly 3.32 per cent, which clearly indicates an overall long build up. A significant concentration of call open interest is evident at the 125 strike, closely trailed by the 130 strike, while substantial open interest on the put side is concentrated at the 120 strike.

Delving into the option chain, there has been a discernible accumulation of long positions from 126 to 121 Call strikes. Conversely, on the put side, there is noteworthy put writing observed from 123 to 118 strikes. This clearly indicates bullish momentum in the stock.