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Derivatives strategy on Manappuram Finance by HDFC Securities

Derivative call by Nandish Shah, Technical Analyst, HDFC securities.

Nandish Shah  |  Mumbai 

Buy Sell Ideas
Buy Sell Ideas

Bull Spread strategy on MANAPPURAM FINANCE

Buy October 140 Call at Rs 4.65 & simultaneously sell 150 call at Rs 1.65

Lot Size 6000

Cost of the strategy Rs 3 (Rs 18000 per strategy)

Maximum profit Rs 42000 If closes at or above 150 on October expiry.

Break even Point Rs 143

Rationale:

  • Accumulation of Long build up is seen in the Futures’ during the series till now, where we have seen 5 per cent rise in the Open Interest with price moving up by 2 per cent.
  • Stock price has already given breakout on the monthly chart.
  • Stock price is trading above its 5,20 and 200 day SMA Indicating positive trend for the short to medium term.
  • Oscillator and momentum Indicators like RSI and MACD has been showing strength on the daily and weekly charts.
  • In the option segment, we have seen 71% addition in 150 strikes Call Option in the last two days, suggesting Call buying.

First Published: Fri, October 11 2019. 08:14 IST
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