Bull spread strategy on Bharat Forge by Nandish Shah of HDFC Securities

The stock's primary trend is positive where it is trading above all important moving averages

Buy BHARAT FORGE MAY 650 CALL at Rs 25 and simultaneously sell 680

CALL at Rs 15

Lot Size: 1,500

Cost of the strategy: Rs 10 (Rs 15,000 per strategy)

Maximum profit: Rs 30,000 If Bharat Forge closes at or above 680 on 27 May expiry.

Breakeven Point: Rs 660

Rationale:

-- We have seen long build-up in the Bharat Forge Futures during the May series till now where we have seen 7 per cent rise in the Open Interest with price rising by 7 per cent.

-- The stock's primary trend is positive where it is trading above all