BULL SPREAD Technique on Canara Financial institution
Purchase Canara Financial institution (29-Sept Expiry) 240 Name at Rs 11.3 & concurrently promote 250 Name at Rs 7.3
Lot Measurement 2,700
Price of the technique Rs 4 (Rs 10,800 per technique)
Most revenue Rs 16,200; If Canara Financial institution closes at or above Rs 250 on 29-Sept expiry.
Breakeven Level Rs 244
Approx margin required Rs 33,000
Rationale:
We’ve got seen lengthy construct up within the Canara Financial institution futures, the place we now have seen 15 per cent addition (Prov) in Open Curiosity with value rising by 2.9 per cent.
The inventory value has damaged out from the downward sloping trendline on the weekly chart, adjoining the highs of week ending 04-Feb and 08-April 2022.
Momentum oscillators like RSI(11) and MFI(10) are in rising mode and positioned above 60 on the weekly chart, indicating power within the present uptrend.
The Nifty PSU Financial institution index has damaged out on the every day chart.
Disclaimer: Nandish Shah is Technical Analysis Analyst at HDFC Securities. He does not maintain any place within the inventory. Views are private.
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