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
>> 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 broken out on the daily chart by surpassing the resistance level of 5800 with higher volumes.
>> The price is forming bullish higher top higher bottom formation on the weekly chart.
>> Plus DI is trading above Minus DI while ADX line is placed above 25, Indicating momentum in the current uptrend.
>> Oscillators like RSI and MFI is showing strength in the current uptrend.
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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