Buy MANAPPURAM FINANCE APRIL 110 Call at Rs 6 & simultaneously sell 120 call at Rs 2.5
Lot Size: 6,000
Cost of the strategy: Rs 3.5 (Rs 21,000 per strategy)
Maximum profit: Rs 39,000 If Manappuram Finance closes at or above 120 on April expiry.
Breakeven Point: Rs 113.5
— Long build up is seen in the Manappuram Finance Futures where we have seen 11 per cent (Prov) rise in the Open Interest with price moving up by 8 per cent.
— The stock price has broken out from the downward slopping trendline on the daily line chart adjoining the close of April 9 and 20 April
— NBFC, as a sector, is looking good for the short-term chart
— RSI Oscillators has formed positive divergence while MACD has closed above the central line
Disclaimer: Nandish Shah is a Technical & Derivative Analyst at HDFC securities. Views are personal.