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Bull Spread Strategy on Canara Bank by Nandish Shah of HDFC Securities

Buy CANARA BANK January 230 Call at Rs 9.3 & simultaneously sell 250 call at Rs 2.80

Lot Size: 2600.

Cost of the strategy Rs 6.5 (Rs 16900 per strategy)

Maximum profit Rs 35100 If Canara bank closes at or above 250 on January expiry.

Break even Point Rs 236.5

  • We have seen Long build up in the Canara bank yesterday where we have seen rise in the Open Interest with price moving up by 3 per cent

  • Stock price has broken out on the daily chart by closing above the resistance level of 224 with higher volumes

  • Stock price is taking support at upward slopping trendline, adjoining the low of 01-October and 09-december 2019

  • Oscillators and Momentum Indicators like RSI and MACD have turned bullish on the daily and weekly charts.

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