Here's a Bull Spread Strategy on Tata Consumer by Nandish Shah of HDFC Sec

The stock price of Tata Consumer has broken out on the daily chart with higher volumes where it closed at all time high level.

Bull spread Strategy on Tata Consumer

Buy Tata Consumer Dec 580 Call at Rs 26.5 & simultaneously sell Dec 620 Call at Rs 10.5

Lot Size: 1,350 

Cost of the strategy: Rs 16 (Rs 21600 per strategy)

Maximum profit Rs 32400 if Tata Consumer closes at or above 620 till 31 Dec expiry.

Breakeven Poin:  Rs 596

Rationale:

 Long build up is seen in the Tata consumer Futures’ where we have seen 3 per cent rise in the Open Interest with price rising by 3 per cent.

 The stock price has broken out on the daily chart with higher volumes where it closed at all time high level.

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

 Plus, DI is trading above minus DI while ADX is placed above 25, Indicating strength in the current uptrend.

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