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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.

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Nandish Shah Mumbai
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

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First Published: May 27 2022 | 7:42 AM IST

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