F&O Strategy: Nandish Shah recommends a Bull spread on ICICI Bank

The technical analyst from HDFC Securities recommends buying ICICI Bank 740 Call and simultaneously selling 760 Call for the June expiry.

BULL SPREAD Strategy on ICICI BANK

Buy ICICI BANK (30-June Expiry) 740 CALL at Rs 20.5 & simultaneously sell 760 CALL at Rs 12.5

Lot Size 1,375

Cost of the strategy Rs 8 (Rs 11,000 per strategy)

Maximum profit Rs 16,500 If ICICI Bank closes at or above 760 on 30 June expiry.

Breakeven Point Rs 748

Rationale:

• We have seen long rollover in the ICICI Bank futures where we have seen 22 per cent addition in Open Interest (Prov) with ICICI Bank rising by 2.5 per cent.
   
• Short term and medium-term trend of the ICICI Bank turned positive as it is trading above its 20 and 200 day EMA. 
   
• ICICI Bank June Future has broken out from the downward sloping trendline, adjoining the highs of 19-April and 29-April 2022.
   
• Momentum Oscillators like RSI(11) and MFI(10) are sloping upwards and placed near 60, 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.