 "Bull Spread strategy on Lupin by Nandish Shah of HDFC Securities")
Bull Spread strategy on Lupin
Buy Lupin 860 Call at Rs 36 & simultaneously sell 900 call at Rs 21
Lot Size: 700
Cost of the strategy: Rs 15 (Rs 10,500 per strategy)
Maximum profit: Rs 17,500 If Lupin closes at or above 900 on May expiry.
Breakeven Point: Rs 875
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Rationale:
-- Long build up is seen in Lupin Futures’ where we have seen 2 per cent(Prov) rise in the Open Interest with price moving up by 2.8 per cent
-- Primary trend of the stock is positive where stock price is trading above its 100 and 200-day SMA.
-- The stock price is taking support at 20-day SMA and has been trading above its 20-day simple moving average since 01 April 2020
-- RSI Oscillators is placed over 60 level while MACD is trading above the central line Indicating bullish set up for the stock
Pharma as a sector looking good on the chart
Disclaimer: Nandish Shah is a Technical & Derivative Analyst at HDFC Securities. Views are personal.
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