Nandish Shah of HDFC Securities suggests Bull Spread strategy on IGL

The stock price of Indraprastha Gas (IGL) has been taking support at 200 day EMA since January 2023

Indraprastha Gas, IGL
Indraprastha Gas
Nandish Shah Mumbai
2 min read Last Updated : Feb 10 2023 | 8:04 AM IST
BULL SPREAD Strategy on IGL
 
Buy IGL (23-Feb Expiry) 440 CALL at Rs 7 & simultaneously sell 450 CALL at Rs 4
 
Lot Size: 1,375
 
Cost of the strategy: Rs 3 (Rs 4,125 per strategy)
 
Maximum profit Rs 9,675 if IGL closes at or above Rs 450 on 23 February expiry
 
Breakeven Point: Rs 443

Also Read


Approx margin required: Rs 21,000

Rationale:

>> We have seen long build up in the IGL Futures during the February series till now, where we have seen 10 per cent addition in Open Interest with price rising by 5 per cent.
 
>> The stock price has broken out on the daily chart on 08-Feb with higher volumes.

>> The stock price has been taking support at 200 day EMA since January 2023.

>> Momentum Oscillators like RSI (11) and MFI (10) are sloping upwards and placed above 60 on the daily chart, indicating strength in the current uptrend.

>>Plus DI is trading above minus DI, while ADX line has started sloping upward, indicating stock price is likely to gather momentum in the coming days.

Note : It is advisable to book profit in the strategy when ROI exceeds 20 per cent.

=================================
Disclaimer: Nandish Shah is senior derivatives & 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 :Stock callsHDFC SecuritiesIndraprastha GasMarketsDerivatives strategyderivatives tradingF&O stockF&O

Next Story