Here is a Bull Spread strategy on L&T by HDFC Securities

Bull spread Strategy on LARSEN

Buy LARSEN 1640 CALL at Rs 19 & simultaneously sell 1680 CALL at Rs 9

Lot Size: 575

Cost of the strategy: Rs 10 (Rs 5750 per strategy)

Maximum profit: Rs 17250 If LARSEN closes at or above 1680 on 29 July expiry.

Breakeven Point: Rs 1650

Rational:

>> We have seen long build up in the Larsen Futures where we have seen 13%(Prov) rise in the Open Interest with price rising by 3.2%.

>> The stock price has broken out on the daily chart with higher volumes where it closed at all-time high levels.

>> RSI Oscillators is placed above 60 and slopping upwards, indicating strength in the current uptrend.

>> Plus DI is trading above Minus DI while ADX line is placed above 25, indicating momentum in the uptrend.