F&O Radar: Bull Call spread strategy for Shriram Finance – News Air Insight

Shriram Finance is exhibiting a strong bullish structure on the daily chart, characterised by a classic higher high–higher low formation, which is a well-known bullish continuation pattern. The stock has taken support near the 20-day EMA and recently has formed a strong bullish candle, reflecting aggressive buying interest and strong demand at lower levels. The stock is trading close to its all-time high and was consolidating for a few days and has given a breakout of this consolidation, suggesting trend continuation and fresh upside momentum. Recent price action shows strong follow-through buying and successful absorption of supply at higher levels.

Currently, the stock is trading around Rs 1085.90 with steady volumes, reflecting continued accumulation and strong market participation. Technically, the trend remains robust as the stock is trading well above its 20-, 50-, 100-, and 200-week EMAs, all of which are sloping upward. The daily RSI at 63.82 reflects healthy bullish momentum without overbought conditions, indicating scope for further upside. Investors may consider longs near current levels. Positional support lies at Rs 1040, above which the overall bullish bias remains intact.

Bull Call Spread (Bullish Strategy)

Buy SHRIRAMFIN 30th MAR 26, 1090 CE 1 lot @ 38

Sell SHRIRAMFIN 30th MAR 26, 1110 CE 2 lots @ 28.65

Buy SHRIRAMFIN 30th MAR 26, 1120 CE 1 lot @ 24.25

Max loss: Rs 4,084 below 1090 (on expiry)Max profit: Rs 12,416 at 1110 (on expiry)

Max profit: Rs 4,590 above 1120 (on expiry)

Margin required: Rs 62,659

Breakeven: 1095

Duration: Till expiry

(The author, Aakash Shah is Derivative Analyst at Choice Broking )

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)