Nandish Shah recommends a Bull spread on Infosys for the December series

The derivative analyst from HDFC Securities recommends buying December 1760 Call and selling 1800 Call of Infosys based on the following four rationales

Bull spread Strategy on INFY

Buy Infosys Dec 1760 CALL at Rs 31.10 & simultaneously sell 1800 CALL at Rs 17.4
Lot Size 300

Cost of the strategy Rs 13.7 (Rs 4,110 per strategy)

Maximum profit Rs 7,890 If Infosys Infy at or above Rs 1,800 on 30 Dec expiry.

Breakeven Point Rs 1,773.7

Rationales:

• We have seen long build up in the Infosys Futures, where we have seen 3%(Prov) rise in the Open Interest with price rising by 1.5%.
   
• Stock price has broken out on the daily chart to close at highest level since 22-Nov.
   
• RSI Oscillators is placed above 50 and sloping upwards, Indicating strength in the current uptrend.
  

 

Technology as a sector looking good on the charts.

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