 "Stock price has broken out on the daily chart where it closed at highest levels since 22-June")
Bull Spread strategy on NMDC
o Buy NMDC 90 CALL at Rs 4 & simultaneously sell 100 Call at Rs 1.30
o Lot Size 6700.
o Cost of the strategy Rs 2.7 (Rs 18090 per strategy)
o Maximum profit Rs 48910 If NMDC closes at or above 100 till August expiry.
o Breakeven Point Rs 92.7
Rationale:
o Long build up is seen in the NMDC Futures’ where we have seen 3%(Prov) rise in the Open Interest with Price moving up by 1.3%.
o Stock price has broken out on
