Bull spread Strategy– Buy MGL SEPT 1200 CALL at Rs 27 & simultaneously sell 1240 CALL at Rs 15
Lot Size – 600
Maximum profit – Rs 16800, if MGL closes at or above 1240 on 30 Sept expiry
Breakeven Point – Rs 1212
– There is a long build-up in the MGL Futures where we have seen a 2 per cent (Prov) rise in the Open Interest with price rising by 3 per cent.
– Stock price has broken out from the downward sloping trendline, adjoining the highs of June 12, 2021, and August 3, 2021, with higher volumes.
– Short term trend of the stock turned positive where the stock price is trading above its 5, 20 and 50 days EMA.
– RSI and MFI Oscillators are placed above 60 and slopping upwards, indicating strength in the current uptrend.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.