Derivatives strategy on IDFC First Bank by HDFC Securities

Derivative call by Nandish Shah, Technical Analyst, HDFC securities

Bull Spread strategy on IDFCFIRST BANK

Buy IDFC FIRST BANK December 45 Call at Rs 1.50 & simultaneously sell 48 call at Rs 0.6

Lot Size: 12,000.

Cost of the strategy Rs 0.90 (Rs 10,800 per strategy)

Maximum profit Rs 25,200 if IDFC First Bank closes at or above 48 on December expiry.

Break-even Point Rs 45.9

Rationale:

-- We have seen accumulation of Long positions in the IDFC Bank Futures’ from lower levels during the October November series where open interest (OI) in the IDFC Bank future’s at the beginning of the series stood above 20 crore shares as