Here's a Bull Spread strategy for Larsen and Toubro by HDFC Securities

Short term trend is positive where stock price is trading above all Important short-term moving averages

Bull Spread strategy on Larsen & Toubro

Buy Larsen 1000 CALL at Rs 28 & simultaneously sell 1060 Call at Rs 10

Lot Size 550. 

Cost of the strategy Rs 18 (Rs 9900 per strategy)

Maximum profit Rs 23100 If Larsen closes at or above 1060 till August expiry.

Breakeven Point Rs 1018

Rationale:
 

>> Long build up is seen in the Larsen Futures’ where we have seen 5% (Prov) rise in the Open Interest with Price moving up by 4%.

>> The stock price has broken out on the daily chart where it closed at five months high with higher volumes