Nandish Shah recommends Bull Spread strategy for M&M Financial Services

BULL SPREAD Strategy on M&M Finance

Buy M&M Finance (28-July Expiry) 190 CALL at Rs 5.2 and simultaneously sell 200 CALL at Rs 2.50

Lot Size 4000

Cost of the strategy Rs 2.7 (Rs 10,800 per strategy)

Maximum profit Rs 29,200 if M&M Finance closes at or above 200 on 28 July expiry

Breakeven Point Rs 192.7


>> We have seen a long build up in the stock’s futures in the July series till now, where we have seen 12% addition in Open Interest with price rising by 8%.

>> The stock price has broken out on the daily chart from the downward sloping trendline, adjoining the highs of 09-Nov 2021 and 04-May 2022.

>> The stock price has been forming bullish higher bottom higher top candle stick pattern on the daily chart.

>> Oscillators like RSI and MFI are in rising mode and placed above 60, Indicating strength in the current uptrend.

Disclaimer: Nandish Shah is Senior Derivative & Technical Analyst at HDFC Securities. Views are personal.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Leave a Comment