Business Standard

Option strategy on Zee Entertainment by Chandan Taparia of MOSL

Rollover of 82% with positive roll cost suggests an up move

Chandan Taparia  |  Mumbai 

technicals

Strategy:

ZEE ENTERTAINMENT ENTERPRISES: BULL CALL SPREAD

BUY ZEEL 520 CALL
SELL ZEEL 540 CALL
BEP : 527
MAX RISK : 7 POINTS / KEEP SL OF : Rs. 5000
MAX REWARD : 13 POINTS / KEEP TARGET OF : Rs. 10000

RATIONALE:
 
1) Respected to its multiple support of 500-505 zones and has been consolidating near to support zones
2) Supports are slightly shifting higher and a small follow could lead it to 540 zones
3) Hovering near to its 50 DEMA
4) Rollover of 82% with positive roll cost suggests an up move
5) Thus low risk Bull Call Spread is recommended

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Fri, September 08 2017. 07:46 IST
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