 "Here is a Bull Spread Strategy on DLF by Nandish Shah of HDFC Securities")
Bull spread Strategy on DLF
Buy DLF APRIL 245 CALL at Rs 8.10 & simultaneously sell 255 CALL at Rs 3.8
Lot Size 3300
Cost of the strategy Rs 4.3 (Rs 14190 per strategy)
Maximum profit Rs 18810 If DLF closes at or above 255 on 29 April expiry.
Breakeven Point Rs 249.3
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Rationale:
We have seen first sign of Long build up in the DLF Futures on Thursday where we have seen 5%(Prov) rise in the Open Interest with price rising by 5 per cent.
The stock price reversed northwards after taking support at 200-day EMA
The short-term trend of the stock turned positive as stock price closed above its 5-day EMA, first time after 07-April 2021
Oscillators like RSI is showing probable trend reversal
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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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