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Economic Times
9 hours ago
- Business
- Economic Times
Deploy Bull Call Spread in Apollo Hospitals for benefits from bullish view
Apollo Hospitals shares are currently showing a bullish pennant pattern. Synopsis Apollo Hospitals shares are currently trading at Rs 7,114. The stock shows a bullish pennant pattern. This suggests a possible upward movement. Analysts recommend a Bull Call Spread. This strategy aims to profit from the expected rise. Support is seen at Rs 7,000. A move above Rs 7,114 could fuel further gains. The RSI indicates strengthening momentum. The shares of Apollo Hospitals were trading at Rs 7,114 on Tuesday, consolidating after a strong bounce from lower levels, indicating a healthy pause within an ongoing uptrend. ADVERTISEMENT The stock has recently formed a Bullish Pennant pattern on the daily chart—a continuation pattern—and has now given a decisive breakout above this formation. 'This price action signals the potential for further upside, provided the stock sustains above the breakout zone, supported by continued buying interest,' said Hardik Matalia, Derivatives Analyst at Choice Broking. Technically, the stock is maintaining a strong structure as it comfortably trades above all its key moving averages—short-term, medium-term, and long-term EMAs—indicating a stable and upward trend across multiple timeframes.'This alignment adds strength to the ongoing bullish momentum and reflects improving price stability,' Matalia added. ADVERTISEMENT The Relative Strength Index (RSI) is currently at 62.11, trending upward, which further confirms the strengthening momentum. The RSI's trajectory suggests increasing bullish pressure, enhancing the conviction for a continued up move as buyers remain a derivatives perspective, the data supports the bullish setup. The highest Call Open Interest (OI) is placed at Rs 7,100, and with the stock now trading above this level, any further rise could trigger short covering, adding fuel to the rally. ADVERTISEMENT On the flip side, the highest Put OI is at Rs 7,000, which now serves as a strong support zone, providing a cushion against potential downside believes that if the stock manages to sustain above the breakout level, the stock could gain upward momentum in the coming sessions, potentially aiming for higher levels in the medium term. ADVERTISEMENT 'A sustained move above Rs 7,114 will confirm trend continuation and could attract further buying interest, reinforcing the bullish outlook,' he this, Hardik Matalia suggests deploying a Bull Call Spread in Apollo Hospitals for potential gains from the bullish momentum. Bull Call Spread ADVERTISEMENT Traders may deploy a Bull Call Spread to monetize gains from a potential market rebound. It involves buying and selling call options with the same expiration but different strike prices. The purchased call is typically in-the-money (ITM) or at-the-money (ATM), while the sold call is out-of-the-money (OTM). This strategy results in a net debit for the trader, as the cost of the ITM/ATM call is partially offset by the cash flow generated from shorting the OTM call.(Prices as of June 16)Below is the payoff graph of the strategy:(Source: 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) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Time of India
11 hours ago
- Business
- Time of India
Deploy Bull Call Spread in Apollo Hospitals for benefits from bullish view
The shares of Apollo Hospitals were trading at Rs 7,114 on Tuesday, consolidating after a strong bounce from lower levels, indicating a healthy pause within an ongoing uptrend. The stock has recently formed a Bullish Pennant pattern on the daily chart—a continuation pattern—and has now given a decisive breakout above this formation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo 'This price action signals the potential for further upside, provided the stock sustains above the breakout zone, supported by continued buying interest,' said Hardik Matalia, Derivatives Analyst at Choice Broking. Technically, the stock is maintaining a strong structure as it comfortably trades above all its key moving averages—short-term, medium-term, and long-term EMAs—indicating a stable and upward trend across multiple timeframes. Live Events 'This alignment adds strength to the ongoing bullish momentum and reflects improving price stability,' Matalia added. The Relative Strength Index (RSI) is currently at 62.11, trending upward, which further confirms the strengthening momentum. The RSI's trajectory suggests increasing bullish pressure, enhancing the conviction for a continued up move as buyers remain active. From a derivatives perspective, the data supports the bullish setup. The highest Call Open Interest (OI) is placed at Rs 7,100, and with the stock now trading above this level, any further rise could trigger short covering, adding fuel to the rally. On the flip side, the highest Put OI is at Rs 7,000, which now serves as a strong support zone, providing a cushion against potential downside risks. Matalia believes that if the stock manages to sustain above the breakout level, the stock could gain upward momentum in the coming sessions, potentially aiming for higher levels in the medium term. 'A sustained move above Rs 7,114 will confirm trend continuation and could attract further buying interest, reinforcing the bullish outlook,' he noted. With this, Hardik Matalia suggests deploying a Bull Call Spread in Apollo Hospitals for potential gains from the bullish momentum. Bull Call Spread Traders may deploy a Bull Call Spread to monetize gains from a potential market rebound. It involves buying and selling call options with the same expiration but different strike prices. The purchased call is typically in-the-money (ITM) or at-the-money (ATM), while the sold call is out-of-the-money (OTM). This strategy results in a net debit for the trader, as the cost of the ITM/ATM call is partially offset by the cash flow generated from shorting the OTM call. (Prices as of June 16) (Prices as of June 16) Below is the payoff graph of the strategy: (Source: Choice Broking)
Mint
06-05-2025
- Business
- Mint
Stocks to buy for short term: From ITC, SBI Cards to Policybazar— experts suggest THESE 6 stock picks; do you own any?
Stocks to buy for the short term: The Indian stock market has been rangebound over the last few sessions amid escalating tensions between India and Pakistan in the wake of the Pahalgam terror attack. Benchmark Nifty 50 declined about 0.40 per cent in morning trade on Tuesday, May 6, as investors keep a close tab on the evolving situation between the two Asian countries. The outcome of the US Federal Reserve meeting, due on Wednesday, is also in focus, even as the market expects the US central bank to hold rates. Fed Chair Jerome Powell's comments on growth and inflation will be the key factor for the markets globally. Experts suggest investors be cautious due to heightened uncertainty on the India-Pakistan front. They advise being prudent in stock selection and betting on stocks with healthy fundamentals and favourable technical indicators. Vishnu Kant Upadhyay of Master Capital Services and Hardik Matalia of Choice Broking recommend buying the following six stocks for the next 2-3 weeks. Take a look: ITC has formed a strong bullish candle on the daily chart, breaking above its recent swing high — a positive sign of trend continuation. The stock has witnessed strong buying interest from lower levels, with a recent healthy throwback toward its demand zone, followed by a sharp rebound, indicating renewed strength and buyer dominance. ITC is trading above all its key exponential moving averages — short-term (20-day), medium-term (50-day), and long-term (200-day) — highlighting a solid bullish structure. The RSI stands at 67.54 and is trending upward, reinforcing the improving momentum and growing buying interest. "If the stock sustains above the ₹ 440 mark, it could trigger further upside movement in the near term," said Matalia. "Traders may consider buying ITC at ₹ 436.95, with a stop loss placed at ₹ 416. On the higher side, the stock has the potential to move toward the ₹ 475– ₹ 485 zone, offering an attractive risk-reward opportunity for short-term traders," Matalia said. SBI Cards is maintaining an upward trend, consistently forming higher highs and higher lows on the daily timeframe — a classic bullish structure. The stock recently witnessed a throwback from its swing high, retesting its demand zone, and has since shown a sharp rebound, signalling renewed buying interest and the potential to break above its recent swing high. SBI Cards has rebounded from its short-term and medium-term exponential moving averages and is now trading above all its key EMAs, confirming strong underlying trend strength. The RSI stands at 59.15 and is on the verge of a positive crossover, indicating improving momentum and rising buyer participation. "A sustained move above the ₹ 930 level could trigger further upside, opening the path toward the ₹ 980– ₹ 1010 range in the short term," said Matalia. "Traders may consider buying the stock at ₹ 904.35, with a stop loss set at ₹ 855. The setup offers an attractive risk-reward ratio for momentum-driven trades," Matalia said. Policybazar has been consolidating within a defined range near its key support zones after witnessing a sharp correction of nearly 41 per cent from its recent highs. Despite the decline, the stock is showing signs of recovery by forming a pattern of higher highs and higher lows, indicating a potential bullish reversal. Policybazar is now trading above all its key exponential moving averages — short-term (20-day), medium-term (50-day), and long-term (200-day) — which suggests a strengthening trend. The RSI is placed at 56.64 and is trending upward with a positive crossover, reflecting growing buying interest and momentum. "A sustained move above the ₹ 1,700 mark could confirm a breakout from the current consolidation phase, paving the way for an upside move," said Matalia. "Traders may consider buying Policybazar at ₹ 1,669.40, with a stop loss at ₹ 1,580. On the upside, the stock has the potential to test the ₹ 1,830– ₹ 1,850 zone, offering a favourable risk-reward ratio for short-term gains," Matalia said. ICICI Lombard General Insurance Company has exhibited a decisive breakout above a descending trendline, indicating a potential trend reversal. The breakout is accompanied by a significant rise in volume, reflecting renewed buying interest. The stock price is sustaining above its key 21- and 55-day exponential moving averages (EMA), which supports the ongoing bullish momentum. Furthermore, the RSI stands at 56, and a bullish divergence on the MACD highlights underlying strength. Triveni Engineering has registered a bullish trend reversal, breaking out of a well-defined rounding bottom formation on the daily chart. The breakout was accompanied by a notable surge in volume, indicating strong accumulation. Post-breakout, the stock retested the horizontal resistance-turned-support and bounced sharply, reaffirming bullish sentiment. It is now trading above its key 21-EMA and 55-EMA, signalling positive momentum. The RSI is currently at 61, while a bullish divergence on the MACD further strengthens the case for continued upward movement. Balkrishna Industries has recently shown a promising bullish breakout from a well-defined falling wedge pattern, as highlighted in the attached chart. This pattern, typically recognised as a bullish reversal setup, had been compressing price action for several months, forming lower highs and lower lows within a narrowing range. The stock successfully broke above the upper boundary of this wedge, signalling a potential shift in momentum. It has also reclaimed key moving averages, including the 34-day, 55-day, and 100-day EMAS, reinforcing the underlying strength. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary. First Published: 6 May 2025, 11:47 AM IST
