Here's a Bull Spread strategy for NMDC by Nandish Shah of HDFC Securities

The short term trend turned positive for NMDC as it has closed above its 5 and 20-day SMA

Bull Spread strategy on NMDC
 

o Buy NMDC 90 CALL at Rs 4 & simultaneously sell 100 Call at Rs 1.30
 

o Lot Size 6700. 
 

o Cost of the strategy Rs 2.7 (Rs 18090 per strategy)
 

o Maximum profit Rs 48910 If NMDC closes at or above 100 till August expiry.
 

o Breakeven Point Rs 92.7

         

Rationale:

o Long build up is seen in the NMDC Futures’ where we have seen 3%(Prov) rise in the Open Interest with Price moving up by 1.3%.
 

o Stock price has broken out on