
-
ALSO READ
Sebi panel weighs relaxations in commodity derivatives framework
HCL Tech Q2 preview: Margins to improve QoQ; revenue may rise up to 20% YoY
HCL Tech Q1 results preview: Here is what top brokerages expect
HCL Tech Q1 results: Net profit rises 2.4% to Rs 3,283 cr, revenue up 16.9%
F&O Strategy: Nandish Shah recommends a Bull Spread on Infy for Aug expiry
-
Derivative Strategy
BULL SPREAD Strategy on HCL Technologies
Buy HCLTECH (27-Oct Expiry) 1020 CALL at Rs 9.30 & simultaneously sell 1040 CALL at Rs 3.80
Lot Size 700
Cost of the strategy Rs 5.50 (Rs 3,850 per strategy)
Maximum profit Rs 10,150; If HCL Tech closes at or above Rs 1,040 on 27-Oct expiry.
Breakeven Point Rs 1,025.50
Approx margin required Rs 29,000
Rationales:
-
We have seen long build up in the HCL Tech futures on Wednesday, where we have seen 30 per cent addition (Prov) in Open Interest with price rising by 2.2 per cent.
-
The stock price has broken out on the daily chart where it closed at its highest level since 09-June 2022.
-
Primary trend of the Stock turned positive as stock price closed above 200-day EMA, after April 2022.
- Momentum Oscillators like RSI (11) and MFI(10) are in rising mode and placed above 60 on the weekly chart, indicating strength in the current uptrend.
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.
Download the Business Standard App for latest Business News and Market News .
First Published: Fri, October 21 2022. 08:08 IST
RECOMMENDED FOR YOU