 "Here's a Bull Spread Strategy on UPL by Nandish Shah of HDFC Securities")
Bull Spread strategy on UPL
Buy UPL 530 CALL at Rs 18.55 & simultaneously sell 550 Call at Rs 11.55
Lot Size 1300
Cost of the strategy Rs 7 (Rs 9100 per strategy)
Maximum profit Rs 16900 If UPL closes at or above 550 till September expiry
Breakeven Point Rs 537
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Rationale:
Long build up is seen in the UPL Futures’ where we have seen 4%(Prov) rise in the Open Interest with Price moving up by 4%.
The stock price has broken out on the daily chart where it closed at six months high, highest since 27 Feb.
The stock price is taking support at 200-day EMA
Short term trend of the stock is positive where 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 momentum in the uptrend
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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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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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