Buy BANK NIFTY (EXPIRY JULY 01) 35,000 CALL at Rs 359 & simultaneously sell 35,500 CALL at Rs 167
Lot size: 25
Cost of the strategy: Rs 192 (Rs 4,800 per strategy)
Maximum profit: Rs 7,700 if Bank Nifty closes at or above 35,500 on July 01 expiry
Breakeven point: 35,192
Rationale:
-- We have seen long build-up in the Bank Nifty Futures where we have seen 16 per cent (Prov) rise in the Open Interest with Bank Nifty rising by 0.7 per cent
-- Bank Nifty's short-term trend has turned positive as it closed above its 5- and 20-day EMA
-- Bank Nifty formed multiple bottoms around 34,500 levels and reversed northwards
-- On the daily chart, RSI(11) has broken out from the downward slopping trendline, Indicating strength in the index
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
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