F&O Strategy: Nandish Shah recommends a Bull Spread on Tata Consumer

Web Exclusive

The stock price has broken out on the daily chart with higher volumes, where it closed at the highest level since November 2021


Stock calls | Markets | Tata Consumer Products

Nandish Shah  | 


Buy TATA CONSUMER (29-Sept Expiry) 850 CALL at Rs 27 & simultaneously sell 870 CALL at Rs 19

Lot Size: 900

Cost of the strategy: Rs 8 (Rs 7,200 per strategy)

Maximum profit: Rs 10,800 If Tata consumer closes at or above Rs 870 on Sept 29 expiry

Breakeven Point: Rs 858

Approx margin required: Rs 34,000


  • We have seen long build up in the Tata comm futures, where we have seen 12 per cent addition (Prov) in Open Interest with price rising by 4 per cent.

  • The stock price has broken out on the daily chart with higher volumes, where it closed at the highest level since November 2021.

  • Momentum Oscillators like RSI (11) and MFI (10) are in rising mode and are placed above 60 on the daily weekly chart, indicating strength in the current uptrend.

  • Plus DI is trading above minus DI and ADX line has started rising upwards, indicating that the stock price is likely to gather momentum in the current uptrend.


Disclaimer: Nandish Shah is Senior Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 02 2022. 08:35 IST

Source link

Comments are closed.