Monday, March 8, 2021

Bull Spread strategy on Britannia by Nandish Shah of HDFC Securities

Follow Us on Social Media

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.

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

Source link

Latest news

UK’s Covid-19 vaccine rollout expands to over-56 age groups, Health News, ET HealthWorld

The UK entered the next phase of its vaccination drive against Covid-19 on Sunday as the eligible cohorts for jabs were expanded from over-60s...
All countries
Total Active Covid19 Cases
Updated on March 8, 2021 1:37 am

FIFA 21 What If Team 2 confirmed featuring Richarlison and Sergio Reguilon

The FUT 21 What If promo continues this evening (Friday) with the release of What If Team 2, featuring Everton forward Richarlison....

Match Preview – Sri Lanka vs West Indies, Sri Lanka tour of West Indies 2020/21, 3rd T20I

Big pictureSri Lanka have broken their barren streak. They'd lost eight T20 internationals in a row - against, Australia, India and West Indies. Finally...

Related news

Singapore emerges as Asia’s digital securities trading hub

SINGAPORE -- While Tesla's $1.5 billion investment in bitcoin has added to recent excitement over cryptocurrencies, the blockchain technology that underlies their use is creating...

Trump sends cease-and-desist letter to GOP groups RNC, NRCC, NRSC to stop fundraising off his name

In his first public appearance since leaving office, former president Donald Trump further cemented his dominance over the Republican Party. (Drea Cornejo/The Washington Post)It...