F&O Strategy for Bharat Forge: HDFC Securities recommends a Bull Spread

Buy Bharat Forge Rs 800 Call option and simultaneously Sell Rs 820 Call of the June series, suggests Nandish Shah, Sr. derivatives & technical research analyst of HDFC Securities.



Nandish Shah Mumbai

Listen to This Article

Bull Spread Strategy on Bharat Forge

Buy BHARATFORGE (29-June Expiry) 800 CALL at Rs 22.1 & simultaneously sell 820 CALL at Rs 18.6

Lot Size 1,000

Cost of the strategy Rs 3.50 (Rs 3,500 per strategy)

Maximum profit Rs 16,500; If BHARATFORGE closes at or above Rs 820 on 29-June expiry.

Breakeven Point Rs 803.5

Also Read

F&O Call: Nandish Shah recommends Bull Spread strategy on Bharat Forge

F&O Strategy: Here's why Nandish Shah recommends Bull spread on M&M Finance

Nandish Shah recommends this F&O strategy in Bank Nifty for 22-Dec expiry

F&O Call: Nandish Shah recommends Bear Spread strategy in HAL

F&O Call: Nandish Shah recommends Bear Spread strategy on Federal Bank

Stocks to watch: Adani Enterprises, Tata Motors, NHPC, AstraZeneca, SJVN

Trading strategies for Nifty Energy, Nifty Consumption indices

Oil prices rise on possible OPEC+ cuts, progress in US debt ceiling deal

Stock Market Live: Asian shares higher; S&P500, Nasdaq end at 9 month-highs

Markets extend losses for 2nd day in volatile trade; Sensex dips 193.70 pts

Approx margin required Rs 28,000


  • We have seen long build up in Bharat Forge Future on Thursday, where we have seen 2 per cent addition in  Open Interest (Prov) with price rising by 0.64 per cent.
  • The stock price has broken from the downward sloping trendline on the daily chart, adjoining the highs of 13-Feb-2023 and 02-May 2023.
  • Oscillators and momentum indicators are showing strength in the current uptrend.
  • Plus DI is trading above minus DI while ADX line has started sloping upwards, suggesting stock price is likely to gather momentum in the coming days.
Note: It is advisable to book profit in the strategy when ROI exceeds 20 per cent.

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

First Published: Jun 2 2023 | 7:56 AM IST

Explore News