Bull Spread Strategy on Bharat Forge
Buy Bharat Forge (29-Sept Expiry) 790 CALL at Rs 15.65 & simultaneously sell 810
CALL at Rs 9
Lot Size 1000
Cost of the strategy Rs 6.65 (Rs 6,650 per strategy)
Maximum profit Rs 13,350, if Bharat forge closes at or above Rs 810 on 29-Sept expiry.
Breakeven Point Rs 796.65
Approx margin required Rs 34,000
- We have seen long build up in the Bharat Forge futures, where we have seen 16% addition (Prov) in Open Interest with price rising by 3%.
- Stock price is forming higher top higher bottom formation on the daily chart.
- Primary trend of the stock is positive as it is trading above its 50, 100 and 200 day EMA.
- Momentum Oscillators like RSI (11) and MFI (10) is in rising mode and placed above 60 on the daily chart, indicating strength in the current uptrend.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.
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