F&O Strategy: Nandish Shah recommends a Bull Spread on BEL for July expiry

The technical analyst from HDFC Securities recommends buying BEL 240 Call and simultaneously selling 250 Call of the July expiry.

Bull Spread strategy on BEL

Buy BEL (28-July Expiry) 240 Call at Rs 6.15 & simultaneously sell 250 Call at Rs 2.85

Lot Size 3,800

Cost of the strategy Rs 3.3 (Rs 12,540 per strategy)

Maximum profit Rs 25,460 If BEL closes at or above 250 on 28 July expiry

Breakeven Point Rs 243.3

Rationales:

We have seen long build up in the BEL futures, where we have seen 4 per cent addition in Open Interest with price rising by 1.8 per cent.

Stock price has broken out of the daily line chart where it closes at highest level since 27-June 2022.

Stock price