Bull spread Strategy on LIC HOUSING FINANCE
Buy LICHSG FINANCE FEB 410 CALL at Rs 10.7 & simultaneously sell 430 CALL at Rs 5
Lot Size 2000
Cost of the strategy Rs 5.7 (Rs 11,400 per strategy)
Maximum profit Rs 28,600; If LIC Housing Fin closes at or above 430 on 24 Feb expiry
Breakeven Point Rs 415.7
Rationales:
-
We have seen long build up in the LIC Housing Finance future where we have seen 2 per cent addition (Prov) in Open Interest with price rising by 2.7 per cent. -
Stock price has broken out on the daily chart from the downward sloping trendline, adjoining the highs of 19-Oct-21 and 03-Feb-2022. -
Primary trend is bullish as stock price is trading above all important short and medium term moving averages. -
Oscillators like RSI and MFI is placed above 60 and sloping upwards on the daily chart, 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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First Published: Fri, February 11 2022. 08:21 IST
