 "Buy Sell Ideas")
Bull Spread strategy on MANAPPURAM FINANCE
Buy Manappuram Finance 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 Manappuram Finance closes at or above 150 on October expiry.
Break even Point Rs 143
Rationale:
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Accumulation of Long build up is seen in the Manappuram Finance 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.
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Stock price has already given breakout on the monthly chart.
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Stock price is trading above its 5,20 and 200 day SMA Indicating positive trend for the short to medium term.
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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.
