F&O Strategy: Nandish Shah recommends a Bull Spread on Tata Consumer
The stock price has broken out on the daily chart with higher volumes, where it closed at the highest level since November 2021
Nandish Shah |
Last Updated at September 2, 2022 08:35 IST
BULL SPREAD Strategy on TATA CONSUMER
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.
First Published: Fri, September 02 2022. 08:35 IST