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Here's a Bull Spread Strategy on Exide Industries by HDFC Securities

Long build up is seen in the Exide Futures' where we have seen 7 per cent rise in the Open Interest with price rising by 4 per cent

Topics
Markets | Market technicals | HDFC Securities

Nandish Shah  |  Mumbai 

stock, market, shares, investment, investors, trading, sensex, growth, technology
Representative image

Bull spread Strategy on Exide Industries

Buy EXIDE Ind 170 Call at Rs 6.80 & simultaneously sell 180 Call at Rs 3.10

Lot Size: 3,600

Cost of the strategy: Rs 3.70 (Rs 13320 per strategy)

Maximum profit: Rs 22,680 if Exide closes at or above 180 till 26 November expiry.

Breakeven Point: Rs 173.7

Rationale:

-- Long build-up is seen in the Exide Futures’ where we have seen 7 per cent rise in the Open Interest with price rising by 4 per cent

-- Stock price has broken out on the daily chart with higher volumes

-- Short-term trend of the stock is positive where it is trading above its 5 and 20-day SMA

-- Oscillators like RSI and MFI are showing strength in the stock


Disclaimer: Nandish Shah is Technical Research Analyst at He doesn't hold any position in the stock. Views are personal.

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First Published: Fri, November 13 2020. 08:11 IST
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