Here's a Bull Spread strategy on Axis Bank by HDFC Securities

Buy Axis Bank 480 CALL at Rs 20.20 & simultaneously sell 510 Call at Rs 9.2

Lot Size: 1,200
 

Cost of the strategy: Rs 11 (Rs 13,200 per strategy)

Maximum profit: Rs 22,800 If Axis Bank closes at or above 510 on September expiry

Breakeven Point: Rs 491

         

Rationale:

-- Long build-up is seen in the Axis Bank Futures’ where we have seen 13 per cent (Prov) rise in the Open Interest with Price moving up by 2 per cent.

-- Stock price has broken out on the daily chart where it closed at one-month high -- highest since July 22

-- Short-term trend of the stock is positive where the stock price is trading above its 5- and 20-day Moving averages

-- Oscillators like RSI & MFI are showing strength in the stock

-- +DI is trading above Minus DI while ADX is placed above 25, indicating strength in the uptrend
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He or HDFC Securities Ltd. does not have any financial interest in the subject company. The analyst, currently, doesn't hold any position in the stocks