Doulitsa Press Release Submission

News that change your days

Derivatives analyst Nandish Shah recommends Bull Spread on Bharat Forges

Derivatives analyst Nandish Shah recommends Bull Spread on Bharat Forges

Web Exclusive The analyst from HDFC Securities recommends buying Bharat Forge 790 Call and simultaneously selling 810 Call of the September series. Topics Bharat Forge | Market trends | stock market trading Nandish Shah  |  Mumbai  Last Updated at September 23, 2022 08:15 IST Bull Spread Strategy on Bharat Forge Buy Bharat Forge (29-Sept Expiry) 790 CALL at Rs…


Web Exclusive

The analyst from HDFC Securities recommends buying Bharat Forge 790 Call and simultaneously selling 810 Call of the September series.

Topics


Bharat Forge | Market trends | stock market trading


Nandish Shah  | 
Mumbai 


Industrial segment likely to drive growth of Bharat Forge stock

Bull Spread Strategy on Bharat Forge

Buy Bharat Forge (29-Sept Expiry) 790 CALL at Rs 15.65 & simultaneously sell 810

CALL at Rs 9

Lot Size 1000

Cost of the strategy Rs 6.65 (Rs 6,650 per strategy)

Maximum profit Rs 13,350, if Bharat forge closes at or above Rs 810 on 29-Sept expiry.

Breakeven Point Rs 796.65

Approx margin required Rs 34,000

Rationale:

  • We have seen long build up in the Bharat Forge futures, where we have seen 16% addition (Prov) in Open Interest with price rising by 3%.

  • Stock price is forming higher top higher bottom formation on the daily chart.

  • Primary trend of the stock is positive as it is trading above its 50, 100 and 200 day EMA.

  • Momentum Oscillators like RSI (11) and MFI (10) is in rising mode and placed above 60 on the daily chart, Indicating strength in the current uptrend.

Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

First Published: Fri, September 23 2022. 08:15 IST

About Post Author

WP2Social Auto Publish Powered By : XYZScripts.com