Mumbai: Traders could initiate a bull call spread on Infosys shares in advance of its initial quarter quantities on July 15 as the counter has been witnessing getting momentum and could test its record high of Rs 847 apiece, mentioned analysts.
The tactic requires purchasing an 800 strike call and simultaneously promoting an 840 strike call for a moderate upside. In scenario of adverse movement, the loss is capped as a better strike call has been offered. Each phone calls expire on July 30.
Employing Monday closing rates, the trader buys the 800 call for 24 a share (1,200 shares make one particular lot) and sells an 840 call for 9.6 a share. This minimizes the debit to 14.4 even though the greatest profit is capped at 25.6, no issue how substantially Infosys rises soon after the success.
Rajesh Palviya, derivatives head at Axis Securities, expects Infosys to increase toward its record high post the Q1 numbers. Rohit Srivastava, technical analyst, stated the “momentum” in Infosys remained solid, many thanks to the “optimism” in the US tech sector. He pegs the significant resistance at 847 and support at 762.
On Monday, option writers extra a provisional 3.25 lakh shares to the 800 strike put, getting the total open position to 6.11 lakh shares even as Infosys jumped 2 for every cent to Rs 796. This is a bullish signal.