F&O Strategy: Nandish Shah recommends a Bull spread on Federal Bank

The technical analyst from HDFC Securities recommends buying Federal Bank 95 Call and simultaneously selling 100 Call for the June expiry.

NSE, national stock exchange, nifty50
Nandish Shah Mumbai
1 min read Last Updated : Jun 03 2022 | 7:28 AM IST
BULL SPREAD Strategy on FEDERAL BANK

Buy FEDERAL BANK (30-June Expiry) 95 CALL at Rs 2.35 & simultaneously sell 100 CALL at Rs 1.10

Lot Size 10,000

Cost of the strategy Rs 1.25 (Rs 12,500 per strategy)

Maximum profit Rs 37,500 if Federal Bank closes at or above 100 on 30 June expiry.

Breakeven Point Rs 96.25

Also Read


Rationales:

  • We have seen long build up in the Federal Bank futures where we have seen 14 per cent addition in Open Interest (Prov) with Federal Bank rising by 3 per cent.
     
  • Primary trend of the Federal bank turned positive as it has closed above its  200-day EMA. 
     
  • Stock price has broken out from the downward sloping trendline, adjoining the highs of 04-April and 29-April 2022.
     
  • Momentum Oscillators like RSI(11) and MFI(10) are sloping upwards and placed near 60, 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.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Market technicalsBuzzing stocksDerivatives strategyDerivative tradingStock PicksFederal BankF&O Strategies

Next Story