Here's a derivative strategy for Canara Bank by HDFC Securities

The stock price has broken out on the daily line chart with higher volumes to close at its highest level since July 16, 2021

Bull spread Strategy on CANARA BANK

Buy CANARA BANK 150 CALL at Rs 7 and simultaneously sell 160 CALL at Rs 3.50

Lot Size: 5400

Cost of the strategy: Rs 3.5 (Rs 18,900 per strategy)

Maximum profit: Rs 35,100 if CANARA BANK closes at or above Rs 160 on the August 26 expiry

Breakeven Point: Rs 153.5

Rationale:
 

We have seen long build up in the Canara Bank Futures, with 23% (Prov) rise in the Open Interest accompanied by a price rise of 4.88%.

Short term trend of the stock turned positive as it closed above its 5, 20- and 50-day EMA

The stock price has broken out