Web Exclusive
Derivatives strategy on Bharat Electronics by HDFC Securities

Trading Strategy
Bull Spread strategy on BEL

Buy BEL OCTOBER 115 Call at Rs 3.70 & simultaneously sell 125 call at Rs 0.70

Lot Size  6000.

Cost of the strategy Rs 3 (Rs 18000 per strategy)

Maximum profit Rs 42000 If BEL closes at or above 125 on October expiry(31-Oct)

Break even Point Rs 118
  • Long build up is seen in the BEL Futures’ during the October series till now, where we have seen more than 20% rise in Open Interest with price rising by 4.5 per cent.

  • In the option segment, we have seen significant addition in 120 strike Call Option during the last few days, suggesting Call buying.

  • Stock price has already broken out on the weekly chart by closing above the resistance level of 113

  • Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.

  • Stock price is trading above its 5,20 and 200 day sma, Indicating positive trend in all the time frames

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