Buy PIDILITE SEPT 2360 CALL at Rs 56 & simultaneously sell 2400 CALL at Rs 41
Lot Size 500
Cost of the strategy Rs 15 (Rs 7500 per strategy)
Maximum profit Rs 12500 If PIDILITE closes at or above 2400 on 30 Sept expiry.
Breakeven Point Rs 2375
We have seen long build up in the Pidilite Futures during the Sept series till now, where we have seen 18% rise in the Open Interest with price rising by 5%.
Stock price has broken out on the weekly chart to close at all time high levels.
Stock price is forming bullish higher top higher bottom formation on the weekly chart.
Short and medium-term trend of the stock is positive where stock price is trading above its 5, 20 and 50 day EMA.
RSI and MFI Oscillators are placed above 60 and slopping upwards, Indicating 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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.