Nandish Shah of HDFC Securities has recommended a 'Bull Spread' strategy on MidCap Nifty and PNB Housing Finance as the analyst notes a positive bias and build-up of long positions at these counters. According to reports from Business Standard, the recommendations come with specific strike prices, lot sizes, and expiry dates for both derivatives strategies.
The MidCap Nifty Bull Spread involves buying 14700 CALL at ₹203 and simultaneously selling 14900 CALL at ₹113 with a lot size of 120. As reported by Business Standard, the maximum profit is ₹13,200 if MidCap Nifty closes at or above 14,900 on 28 July expiry, while maximum loss is ₹10,800 if it closes at or below 14,700. The breakeven point is set at 14,790 with a risk reward ratio of 1:1.22 and approximate margin required of ₹31,500.
The PNB Housing Finance Bull Spread involves buying 1100 CALL at ₹29.35 and simultaneously selling 1120 CALL at ₹20.75 with a lot size of 650. According to Business Standard, the maximum profit is ₹7,410 if PNB Housing Finance closes at or above ₹1,100 on 28 July expiry, while maximum loss is ₹5,590 if it closes at or below ₹1,080. The breakeven point is set at ₹1,108.6 with a risk reward ratio of 1:1.33 and approximate margin required of ₹25,000.
For MidCap Nifty, the analyst cites long build-up in futures with rising open interest and price rise, along with strong short-term trend above important moving averages. As reported by Business Standard, the stock is forming higher top higher bottom candle stick pattern on monthly charts with RSI oscillator in rising mode above 50 on daily charts. For PNB Housing Finance, the rationale includes long build-up in futures with rising open interest and 1.10% price rise, positive short-term trend above 5 and 20 day EMAs, and stock price breakout from downward sloping trendline with RSI oscillator above 60 on daily charts.
These recommendations come from HDFC Securities Senior Technical/Derivative Analyst Nandish Shah, with the strategies designed for 28-July expiry period. According to Business Standard, the analyst's views represent his own technical analysis and derivative trading recommendations based on current market conditions and technical indicators for both MidCap Nifty and PNB Housing Finance. The current market context shows broader market pressure with BSE Sensex declining 408.59 points to 77,207.81 and Nifty 50 down 113.35 points to 24,097.65, following weak global cues and US-Iran war escalation.
