Bull spread Strategy on Britannia
Buy Britannia Jan 3650 Call at Rs 54 and simultaneously sell Jan 3800 Call at Rs 15
Lot Size: 200
Cost of the strategy: Rs 39 (Rs 7,800 per strategy)
Maximum profit: Rs 22,200 if Britannia closes at or above 3,800 till 28 Jan expiry.
Breakeven Point: Rs 3,689
— Long build-up was seen in the Britannia Futures’ where we have seen a 4% rise (Prov) in the Open Interest with the price rising by 1 per cent
— Short-term trend of the stock has turned positive where the stock price is trading above all important short-term moving averages
— Oscillators like RSI and MFI are showing strength in the stock
— The stock price is taking support at 200-day EMA since many months
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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