Web Exclusive
Bull Spread strategy on Britannia by Nandish Shah of HDFC Securities

Oscillators like RSI and MFI are showing strength in the stock
Bull spread Strategy on Britannia

Buy Britannia Jan 3650 Call at Rs 54 and simultaneously sell Jan 3800 Call at Rs 15

Lot Size: 200

Cost of the strategy: Rs 39 (Rs 7,800 per strategy)

Maximum profit: Rs 22,200 if Britannia closes at or above 3,800 till 28 Jan expiry.

Breakeven Point: Rs 3,689


-- Long build-up was seen in the Britannia Futures’ where we have seen a 4% rise (Prov) in the Open Interest with the price rising by 1 per cent

-- Short-term trend of the stock has turned positive where the stock price is trading above all important short-term moving averages

-- Oscillators like RSI and MFI are showing strength in the stock

-- The stock price is taking support at 200-day EMA since many months

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel