Here's a Bull Spread Strategy on Exide Industries by HDFC Securities

Bull spread Strategy on Exide Industries

Buy EXIDE Ind 170 Call at Rs 6.80 & simultaneously sell 180 Call at Rs 3.10 

Lot Size: 3,600

Cost of the strategy: Rs 3.70 (Rs 13320 per strategy) 

Maximum profit: Rs 22,680 if Exide closes at or above 180 till 26 November expiry. 

Breakeven Point: Rs 173.7 

Rationale: 

-- Long build-up is seen in the Exide Futures’ where we have seen 7 per cent rise in the Open Interest with price rising by 4 per cent 

-- Stock price has broken out on the daily chart with higher volumes  

-- Short-term trend of the stock is positive where it is trading above its 5 and 20-day SMA 

-- Oscillators like RSI and MFI are showing strength in the stock 

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