Nandish Shah of HDFC Sec recommends Bull Spread strategy on Tata Steel

2de6afdf70890a9ead4aa60372105e2b

Tata Steel

Bull spread Strategy on TATA STEEL

Buy TATA STEEL MARCH 1,340 CALL at Rs 43 & simultaneously sell 1,400 CALL at Rs 23

Lot Size: 425

Cost of the strategy Rs 20 (Rs 8,500 per strategy)

Maximum profit: Rs 17,000 If Tata steel closes at or above 1400 on 31 March expiry.

Breakeven Point: Rs 1,360

Rationale:

We have seen long build up in the Tata steel future segment where we have seen 12 per cent addition (Prov) in Open Interest with price rising by 4.25 per cent.

The stock price has broken out from the bullish "flag" pattern.

Oscillators like RSI and MFI are placed above 50 and sloping upwards on the daily chart, indicating strength in the current uptrend.

The positional trend for the metal Index has been bullish.

=====================================================

Disclaimer: Nandish Shah is Senior Derivative & Technical Analyst at HDFC securities. He holds no position in any stock. Views expressed are personal.



Source

Total
9
Shares
Leave a Reply

Connect with



Your email address will not be published.

Previous Post
efd7bfac4711aa5be98cec3a94083721

Stocks to Watch: Lupin, Jindal Steel, Wipro, Future Group, Tata Steel Long

Next Post
3cf2295445b555561d59bb1f3fe5a501

DCM Shriram, Jindal Steel: Mehul Kothari’s stock picks in this volatile mkt

Related Posts