Bull Spread Strategy on Bajaj Finance by Nandish Shah of HDFC Securities

The stock price of Bajaj Finance has broken out on the daily chart by surpassing the resistance level of 5800 with higher volumes

Bull spread Strategy on BAJAJ FINANCE
 

Buy BAJAJ FINANCE JUNE 6000 CALL at Rs 164 & simultaneously sell 6300 CALL at Rs 70

Lot Size: 125

Cost of the strategy: Rs 94 (Rs 11750 per strategy)

Maximum profit: Rs 25750 If Bajaj Finance closes at or above 6300 on 24 June expiry.

Breakeven Point: Rs 6094

Rationale:
 

>> We have seen long build up in the Bajaj Finance Futures till now during the June series where we have seen a 7 per cent rise in the Open Interest with price rising by 4 per cent.

>> The stock price has