Here's a derivative strategy on Apollo Hospitals by HDFC Securities

Apollo Hospital's stock price has broken out on the daily chart

Buy Apollo Hospitals 1,540 Call at Rs 45 & simultaneously sell 1,600 call at Rs 23

Lot Size: 500

Cost of the strategy: Rs 22 (Rs 11,000 per strategy)

Maximum profit: Rs 19,000 If Apollo Hospital closes at or above 1,600 on Jul expiry)

Breakeven Point: Rs 1,562

Rationale:

-- Long build-up is seen in the Apollo Futures’ where we have seen 22 per cent (Prov) rise in the Open Interest with price moving up by 3.4 per cent.

-- Stock price has broken out on the daily chart where it closed at the highest level since March 11

-- The stock's short-term trend turned positive where stock price closed above its 5 and 20-day SMA

-- RSI and MFI Oscillators are showing strength in the stock
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities.