 "Oscillators like RSI and MFI suggest strength in the stock")
Bull spread Strategy on Max Financial Services
Buy MFSL Jan 740 Call at Rs 30 & simultaneously sell Jan 780 Call at Rs 14
Lot Size 1300
Cost of the strategy Rs 16 (Rs 20800 per strategy)
Maximum profit Rs 31200 If MFSL closes at or above 780 till 28 Jan expiry.
Breakeven Point Rs 756
Rationale:
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Long build up was seen in the MFSL Futures’ where we have seen 11% rise (Prov) in the Open Interest with price rising by 3%
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The stock price has already broken out on the daily chart on 6th January
- Oscillators like RSI and MFI suggest strength in the stock
