Bull spread Strategy on CANARA BANK
Buy CANARA BANK 150 CALL at Rs 7 and simultaneously sell 160 CALL at Rs 3.50
Lot Size: 5400
Cost of the strategy: Rs 3.5 (Rs 18,900 per strategy)
Maximum profit: Rs 35,100 if CANARA BANK closes at or above Rs 160 on the August 26 expiry
Breakeven Point: Rs 153.5
Rationale:
We have seen long build up in the Canara Bank Futures, with 23% (Prov) rise in the Open Interest accompanied by a price rise of 4.88%.
Short term trend of the stock turned positive as it closed above its 5, 20- and 50-day EMA
The stock price has broken out on the daily line chart with higher volumes to close at its highest level since July 16, 2021
RSI Oscillators is placed above 50 and slopping upwards, Indicating strength in the current uptrend
=====================================
Disclaimer: Nandish Shah is a Technical Analyst with HDFC securities. Views expressed are his own.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
