&w=3840&q=100)
F&O Strategy: Bull Spread trades on Nifty Midcap, Biocon explained
Nandish Shah Mumbai
Bull Spread strategy on MIDCP NIFTY
Buy MIDCP NIFTY (31-July Expiry) 13,500 Call at ₹261 and simultaneously sell 13,700 Call at ₹165
Lot size: 140
Cost of the strategy: ₹96 (₹13,440 per strategy)
Maximum profit: ₹14,560, if MIDCP NIFTY closes at or above 13,700 on 31 July expiry.
Breakeven point: ₹13,596
Risk reward ratio: 1: 1.10
Approx margin required: ₹38,000
Rationale:
Long build-up is seen in the MIDCP NIFTY futures during the series till now, where open interest has risen by 3 per cent, with it rising by 1 per cent.
The primary trend of the MIDCP NIFTY is positive as it is placed above its 50 and 100-day EMAs.
It has been forming a bullish higher top, higher bottom formation on the daily chart.
It has broken out from the downward sloping trendline on the weekly charts.
The short-term trend of the index is positive as it is placed above its 5,11, and 20-day EMAs.
Bull Spread strategy on Biocon
Buy Biocon (31-July Expiry) 380 Call at ₹9.4 and simultaneously sell 390 Call at ₹5.9
Lot size: 2500
Cost of strategy: ₹3.5 (₹8750 per strategy)
Maximum profit: ₹16,250, if Bioson closes at or above ₹390 on 31 July expiry.
Breakeven point: ₹383.5
Risk reward ratio: 1:1.86
Approx margin required: ₹33,000
Rationale:
Long build-up is seen in the Biocon Futures during the July series till now, where we have seen a 5 per cent rise in open interest with price rising by 7 per cent.
Short-term trend remains positive, as the stock price is placed above its 5,11 and 20 day EMAs.
The stock price has been forming a bullish higher top, higher bottom formation on the daily chart.
RSI and MFI oscillators are in rising mode and placed above 60 on the daily chart, indicating strength in the current uptrend.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 hours ago
- Mint
Tata Motors to Syngene- Prashanth Tapse suggests stocks to buy in the short term
Stock market today: Indian stocks trading in red on Friday as investors opted to stay on the sidelines while anticipating a possible trade agreement between India and the US and evaluating the market regulator's prohibition on US trading firm Jane Street over suspected manipulation in derivatives trading. The Nifty 50 increased by 0.04% to reach 25,415.45 points, while the Sensex climbed 0.05% to 83,274.26, as of 10:17 IST. On Thursday, the Securities and Exchange Board of India (SEBI) issued a temporary order against Jane Street, one of the largest quantitative trading firms globally, claiming manipulation via derivative positions. Investors are also looking forward to a potential trade agreement between India and the US, as President Donald Trump's deadline of July 9 for reciprocal tariffs draws near. Prashanth Tapse of Mehta Equities believes a sustained move above 25,400 could push the Nifty 50 toward the upper end of the range, at 25,600. Tapse recommends four stocks to buy in the short-term. Here's what he says about the overall market. Nifty 50 is currently trading at 25,395, well within the near-term range of 25,300 to 25,600. The broader trend remains bullish, supported by firm momentum indicators and healthy sector participation. A sustained move above 25,400 could push the index toward the upper end of the range at 25,600, while any intraday dip toward 25,300 is likely to attract buying interest. Traders should maintain a positive bias with appropriate stop loss placement, as the structure continues to favor bulls. Bank Nifty is trading at 56,729, maintaining a strong upward tone within the short-term range of 56,500 to 57,200. The index has been making higher highs and higher lows, indicating continuation of bullish momentum. A move past 57,000 can open the path toward 57,200, while support remains firm around 56,500. The trend remains positive, with heavyweight banking stocks showing consistent strength. Traders can look to ride the trend with tight risk control near supports. Prashanth Tapse recommends buying these three stocks in the short term - Tata Motors Ltd, Garden Reach Shipbuilders & Engineers Ltd (GRSE), Syngene International Ltd, and Sigachi Industries Ltd. Buy | CMP: ₹ 688 | Stop Loss: ₹ 670 | Target: ₹ 730 Tata Motors share price is trading with a positive structure, having rebounded from a key support near ₹ 670. The RSI is pointing higher, and price action indicates fresh accumulation. With auto sector sentiment staying firm, a move toward ₹ 730 appears likely. A stop loss at ₹ 670 is recommended. Buy | CMP: ₹ 3,005 | Stop Loss: ₹ 2,880 | Target: ₹ 3,250 GRSE share price has maintained strong momentum and is trading in a defined uptrend channel. The stock has recently bounced from the lower band of the trendline and is supported by rising volumes and a strong RSI reading. Technically, the setup favors a rally toward ₹ 3,250. Keep a stop loss at ₹ 2,880. Buy | CMP: ₹ 641 | Stop Loss: ₹ 620 | Target: ₹ 685 Syngene share price has formed a bullish continuation pattern after consolidating near its 50-day moving average. The stock has shown strength above ₹ 635, supported by momentum indicators. The structure points to a short-term move toward ₹ 685. A stop loss at ₹ 620 should be maintained to manage risk. Buy | CMP: ₹ 42 | Stop Loss: ₹ 39.50 | Target: ₹ 48 Sigachi share price has broken out of a base formation with volume confirmation, suggesting a fresh leg of rally could be underway. RSI has picked up from oversold levels, and price is trading above short-term moving averages. With improving sentiment in the small-cap space, Sigachi may head toward ₹ 48. A stop loss at ₹ 39.50 is advised. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
3 hours ago
- Economic Times
Paras Defence shares rally 8% post stock split
Paras Defence and Space Technologies shares rose over 8% on Friday. This followed a 1:2 stock split. The company's market capitalisation is now Rs 7,442.64 crore. The stock split became effective on July 4. It aimed to boost liquidity and attract more retail investors. The stock's RSI indicates neutral momentum. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Paras Defence and Space Technologies Ltd. climbed over 8% on Friday, trading at Rs 921.20 post-adjustment for the recently executed 1:2 stock split , compared to the pre-split closing price of Rs 1, company now holds a market capitalisation of Rs 7,442.64 crore, drawing increased investor interest following the surge in activity comes after the stock split became effective today, July 4 — which was also set as the record date for the sub-division. As per a regulatory filing under SEBI's Listing Obligations and Disclosure Requirements (Regulation 42), Paras Defence had earlier received shareholder approval via postal ballot on June 7, 2025, to split each Rs 10 face-value share into two Rs 5 split is aimed at enhancing liquidity and broadening retail investor participation — a move often seen as a sign of management's confidence in the company's future performance. Despite the price adjustment, the stock's overall value remains unchanged, and investor interest has remained the technical front, the stock shows strength:The 14-day Relative Strength Index (RSI) stands at 59.7, indicating neutral momentum. (An RSI below 30 suggests the stock may be oversold, while a reading above 70 indicates it could be overbought.)Additionally, Paras Defence is trading above all its key moving averages — from the short-term 5-day DMA to the long-term 200-day DMA — a positive signal suggesting the stock is in a strong uptrend across timeframes.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
4 hours ago
- Time of India
Paras Defence shares rally 8% post stock split
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Paras Defence and Space Technologies Ltd. climbed over 8% on Friday, trading at Rs 921.20 post-adjustment for the recently executed 1:2 stock split , compared to the pre-split closing price of Rs 1, company now holds a market capitalisation of Rs 7,442.64 crore, drawing increased investor interest following the surge in activity comes after the stock split became effective today, July 4 — which was also set as the record date for the sub-division. As per a regulatory filing under SEBI's Listing Obligations and Disclosure Requirements (Regulation 42), Paras Defence had earlier received shareholder approval via postal ballot on June 7, 2025, to split each Rs 10 face-value share into two Rs 5 split is aimed at enhancing liquidity and broadening retail investor participation — a move often seen as a sign of management's confidence in the company's future performance. Despite the price adjustment, the stock's overall value remains unchanged, and investor interest has remained the technical front, the stock shows strength:The 14-day Relative Strength Index (RSI) stands at 59.7, indicating neutral momentum. (An RSI below 30 suggests the stock may be oversold, while a reading above 70 indicates it could be overbought.)Additionally, Paras Defence is trading above all its key moving averages — from the short-term 5-day DMA to the long-term 200-day DMA — a positive signal suggesting the stock is in a strong uptrend across timeframes.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
