Here's a Bull Spread Strategy on L&T Finance by HDFC Securities

Bull Spread strategy on L&T Finance

Buy L&T Fin Oct 65 CALL at Rs 2.85 & simultaneously sell 75 Call at Rs 0.60

Lot Size 6800
 

Cost of the strategy Rs 2.15 (Rs 14620 per strategy)
 

Maximum profit Rs 53380 If L&T fin closes at or above 75 till October expiry.
 

Breakeven Point Rs 67.15

Rationale:

• Long build up is seen in the L&T fin Futures’ where we have seen 11%(Prov) rise in the Open Interest with Price rising by 4%.
   
• Stock price has broken out from the downward slopping trendline on the daily chart
   
• Short term trend of the stock is positive where stock price is trading above its 5 and 20-day SMA
   
• RSI Oscillator is placed above 50 level, Indicating strength in the stock
   
• +DI is trading above Minus DI while ADX is placed above 20, indicating strength in the uptrend

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