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Bull spread Strategy on BANDHAN BANK
Buy BANDHAN Bank APRIL 340 CALL at Rs 10.70 & simultaneously sell 360 CALL at Rs 3.70
Lot Size 1,800
Cost of the strategy Rs 7 (Rs 12,600 per strategy)
Maximum profit Rs 23,400 If Bandhan Bank closes at or above Rs 360 on 28 April expiry.
Breakeven Point Rs 347
Rationale:
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We have seen long build up in the Bandhan Bank future where we have seen 2% addition (Prov) in Open Interest with price rising by 5%.
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Stock price has broken out on the daily chart with higher volumes where it closed at highest level since Oct-2021.
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Short term trend of the stock is positive as it is trading above its 5 and 20 day EMA.
- Oscillators like RSI and MFI is placed above 60 and sloping upwards on the daily chart, 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.
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