 "Bull Spread strategy on JSW Steel by Nandish Shah of HDFC Securities")
Bull spread Strategy on JSW STEEL
Buy JSW STEEL 780 CALL at Rs 23.3 & simultaneously sell 810 CALL at Rs 13.30
Lot Size: 1350
Cost of the strategy: Rs 10 (Rs 13,500 per strategy)
Maximum profit: Rs 27,000 if JSW STEEL closes at or above Rs 810 on 26 August expiry
Breakeven Point: Rs 790
Rationale:
- We have seen a long build up in the JSW steel Futures, where we have seen 2%(Prov) rise in the Open Interest, with the price rising by 2.50%.
- The stock price has broken out on the daily line chart with higher volumes to close at all-time high levels.
- Plus DI is trading above -DI and ADX line is placed above 25, indicating momentum in the current uptrend.
- RSI and MFI Oscillators are placed above 60 and slopping upwards, indicating strength in the current uptrend.
==========================================
Buy JSW STEEL 780 CALL at Rs 23.3 & simultaneously sell 810 CALL at Rs 13.30
Lot Size: 1350
Cost of the strategy: Rs 10 (Rs 13,500 per strategy)
Maximum profit: Rs 27,000 if JSW STEEL closes at or above Rs 810 on 26 August expiry
Breakeven Point: Rs 790
Rationale:
- We have seen a long build up in the JSW steel Futures, where we have seen 2%(Prov) rise in the Open Interest, with the price rising by 2.50%.
- The stock price has broken out on the daily line chart with higher volumes to close at all-time high levels.
- Plus DI is trading above -DI and ADX line is placed above 25, indicating momentum in the current uptrend.
- RSI and MFI Oscillators are placed above 60 and slopping upwards, 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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