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Here's a Bull Spread Strategy on HPCL by Nandish Shah of HDFC Securities

Short term trend of HPCL stock has turned positive where it is trading above its 5 and 20-day EMA

Bullish engulfing pattern is formed with higher volumes on the daily chart
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Bullish engulfing pattern is formed with higher volumes on the daily chart

Nandish Shah Mumbai
Bull spread Strategy on HPCL

Buy HPCL 180 Call at Rs 11.80 & simultaneously sell 200 Call at Rs 4.8

Lot Size 2700. 

Cost of the strategy Rs 7 (Rs 18900 per strategy)

Maximum profit Rs 35100 If HPCL closes at or above 200 till 26 November expiry.

Breakeven Point Rs 187

Rationale:
 
Long build up is seen in the HPCL Futures' where we have seen 23 per cent rise in the Open Interest (Prov) with HPCL rising by 5 per cent.

Bullish engulfing pattern is formed with higher volumes on the daily chart.

Short term trend of the stock has

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First Published: Oct 30 2020 | 7:55 AM IST

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