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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