Tata Steel: Bull Call Spread
Buy 520 CE 1 lot
Sell 530 CE 1 lot
1. Tata steel had seen traces of short covering in last series and a strong rollover too
2. Proximity of stock towards its highest call raises expectation of a breakout
3. Follow through movement above 500 could lead to aggressive unwinding in 500 CE propelling the momentum on higher side.
4. Thus trading strategy, OTM Bull Call Spread is recommended
Target: Rs 9,000
Stop Loss: Rs 4,000
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is a Deivatives and Technical Analyst at Motilal Oswal Securities.