Bull Spread strategy on AXIS BANK
Buy AXIS BANK JUNE 760 CALL at Rs 25 and simultaneously sell 790 CALL at Rs 14
Lot size: 1200
Cost of the strategy: Rs 11 (Rs 13,200 per strategy)
Maximum benefit: Rs 22,800 if Axis Bank closes at 790 or more when June 24 expires.
Balance point: Rs 771
>> We have seen a long aggressive rise in Axis Bank futures, where we saw a 22% (Prov) rise in Open Interest with a 2% price rise.
>> The stock price has already broken away from the downtrend line on the daily chart, reaching the highs of February 16 and March 12, 2021.
>> Plus DI is trading above Minus DI while the ADX line is placed above 20, indicating the momentum of the current uptrend.
>> Oscillators such as RSI and MFI are showing strength in the current uptrend.
Disclaimer: Nandish Shah is a Technical Research Analyst at HDFC Securities. He does not hold any position in the stock. Opinions are personal.
Business Standard has always strived to provide up-to-date information and commentary on developments that are of interest to you and which have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times stemming from Covid-19, we continue to remain committed to keeping you informed and up to date with credible news, authoritative opinions and cutting-edge commentary on relevant current issues.
However, we have a demand.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with higher quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscribing to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.