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

The stock price is taking support at 20-day EMA since last two days
Bull Spread strategy on Tata Consumer Products

Buy TATA CONSUMER PRODUCTS 350 Call at Rs 13.3 & simultaneously sell 370 call at Rs 6.3

Lot Size: 2,700

Cost of the strategy: Rs 7 (Rs 18,900 per strategy)

Maximum profit: Rs 35,100 If Tata consumer closes at or above 357 on May expiry)

Break-even point: Rs 357  

Rationale:

-- Long build-up is seen in the Tata consumer Futures’ where we have seen 8 per cent (Prov) rise in the Open Interest with price moving up by 1.7 per cent.

 
-- Primary trend of the stock is positive where stock price is trading above its 200-day SMA

-- Stock price is taking support at 20-day EMA since last two days

-- RSI Oscillators is placed around 60 while MACD is trading above the central line Indicating bullish set ups

 



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