Bull Spread strategy on Havells

Buy Havells 640 CALL at Rs 15.15 & simultaneously sell 670 Call at Rs 5.15

• Lot Size 1000.
  
• Cost of the strategy Rs 10 (Rs 10000 per strategy)
  
• Maximum profit Rs 20000 If Havells closes at or above 670 till August expiry
  
• Breakeven Point Rs 650

Rationale:

• Long build up is seen in the Havells Futures’ where we have seen 4%(Prov) rise in the Open Interest with Price moving up by 1.5%
  
• Stock price has broken out on the daily chart where it closed at nearly six month high with higher volumes
  
• Primary trend of the stock is positive where stock price is trading above its 200 day Moving average
  
• Oscillators like RSI & MFI are showing strength in the stock
  
• +DI is trading above Minus DI while ADX is placed above 25, indicating momentum in the uptrend