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Derivatives strategy on Manappuram Finance by HDFC Securities

Buy Sell Ideas
Bull Spread strategy on MANAPPURAM FINANCE

Buy Manappuram Finance October 140 Call at Rs 4.65 & simultaneously sell 150 call at Rs 1.65

Lot Size  6000

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

 
Maximum profit Rs 42000 If Manappuram Finance closes at or above 150 on October expiry.

 
Break even Point Rs 143

Rationale:
  • Accumulation of Long build up is seen in the Manappuram Finance Futures’ during the series till now, where we have seen 5 per cent rise in the Open Interest with price moving up by 2 per cent.

     
  • Stock price has already given breakout on the monthly chart.

     
  • Stock price is trading above its 5,20 and 200 day SMA Indicating positive trend for the short to medium term.

     
  • Oscillator and momentum Indicators like RSI and MACD has been showing strength on the daily and weekly charts.

     
  • In the option segment, we have seen 71% addition in 150 strikes Call Option in the last two days, suggesting Call buying.


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