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Bull Spread strategy on Lupin by Nandish Shah of HDFC Securities

Primary trend of the stock is positive where stock price is trading above its 100 and 200-day SMA

Topics
Markets | HDFC Securities | Market technicals

Nandish Shah  |  Mumbai 

stock, market, shares, investment, investors, trading, sensex, growth, technology

Bull Spread strategy on Lupin

Buy 860 Call at Rs 36 & simultaneously sell 900 call at Rs 21

Lot Size: 700

Cost of the strategy: Rs 15 (Rs 10,500 per strategy)

Maximum profit: Rs 17,500 If closes at or above 900 on May expiry.

Breakeven Point: Rs 875

Rationale:

-- Long build up is seen in Futures’ where we have seen 2 per cent(Prov) rise in the Open Interest with price moving up by 2.8 per cent

-- Primary trend of the stock is positive where stock price is trading above its 100 and 200-day SMA.

-- The stock price is taking support at 20-day SMA and has been trading above its 20-day simple moving average since 01 April 2020

-- RSI Oscillators is placed over 60 level while MACD is trading above the central line Indicating bullish set up for the stock

Pharma as a sector looking good on the chart


Disclaimer: Nandish Shah is a Technical & Derivative Analyst at Views are personal.

First Published: Fri, May 15 2020. 08:17 IST
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