Nandish Shah of HDFC Securities is bullish on this power-related stock

The stock price of PFC has broken out from the downward slopping trendline on the weekly chart

Bull spread Strategy on PFC

Buy PFC OCT 150 CALL at Rs 5.3 & simultaneously sell 160 CALL at Rs 2.7

Lot Size 6200

Cost of the strategy Rs 2.6 (Rs 16120 per strategy)

Maximum profit Rs 45880 If PFC closes at or above 160 on 28 Oct expiry.

Breakeven Point Rs 152.6

Rationale:

We have seen long build up in the PFC Futures, where we have seen 21% rise in the Open Interest with price rising by 4%.

The stock price has broken out from the downward slopping trendline on the weekly chart, adjoining the highs of 13-April 2017 and 19-March