 "Primary trend of the stock is positive where stock price is trading above its 200-day SMA")
Bull Spread strategy on Manappuram Finance
Buy Manappuram Fin Sept 160 CALL at Rs 4.75 & simultaneously sell 170 Call at Rs 1.75
Lot Size 6000
Cost of the strategy Rs 3 (Rs 18000 per strategy)
Maximum profit Rs 42000 If Manappuram fin closes at or above 170 till September expiry.
Break-even Point Rs 163
Rationale:
Long build up is seen in the Manappuram fin Futures’ where we have seen 7% (Prov) rise in the Open Interest with Price closing flat.
After breaking out from the downward slopping trendline on 11th Sept, Stock price is consolidating in the narrow
