Bull spread strategy on Jubilant Food by Nandish Shah of HDFC Securities - Newswale Newswale

Bull spread strategy on Jubilant Food by Nandish Shah of HDFC Securities

Buy JUNE 3300 CALL at Rs 87 & simultaneously sell 3500 CALL at Rs 37

Lot size: 250

Cost of the strategy: Rs 50 (Rs 12,500 per strategy)

Maximum profit: Rs 37,500 if closes at or above 3,500 on 24 June expiry.

Breakeven point: Rs 3.350


— We have seen long build-up in the Futures till now during the June series where we have seen 13 per cent rise in the Open Interest with price rising by 3.5 per cent

— The stock price has broken out on the daily line chart by surpassing the resistance level of 3,204 with higher volumes

— The stock price is forming bullish higher top, higher bottom formation on the weekly and monthly charts

— Plus DI is trading above Minus DI while ADX line is placed above 25, indicating momentum in the current uptrend

— Oscillators like RSI and MFI is placed above 60 and slopping upwards, indicating strength in the current uptrend

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

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