Bull spread strategy on Deepak Nitrite by Nandish Shah of HDFC Securities

The stock price has broken out on the daily chart where it has closed at highest levels since May 06, 2021 with higher volumes

Buy DEEPAK NITRITE 1900 CALL at Rs 71 & simultaneously sell 2000 CALL at Rs 38

Lot size: 500

Cost of the strategy: Rs 33 (Rs 16,500 per strategy)

Maximum profit: Rs 33,500 If Deepak Nitrite closes at or above 2,000 on July 29 expiry

Breakeven Point: Rs 1,933

Rationale:

-- We have seen long build up in the Deepak Nitrite Futures where we have seen 4 per cent (Prov) rise in the Open Interest with Deepak Nitrite rising by 4 per cent

-- The stock price has broken out on the daily chart where it has closed at highest