After making a excessive at Rs 2,313 in March, the worth of TVS Motors share declined to a low of Rs 1,873 on April 19, from the place it resumed its restoration.
Since March 14, the inventory has been trapped in a variety of Rs 2,200 on the upside and round Rs 1,926 on the decrease aspect.
Highest excellent OI (expiry on thirtieth May)
Highest Call OI- Rs 2,200 (Rs 1,112); RS 2,300 (Rs 1,249)
Highest Put OI- Rs 2,100 (Rs 1,149)
“TVS Motors showcases promising technical indicators, marked by a bullish candle formation on its daily chart from the support levels of Rs 2,090 near to its 20 Day EMA levels currently trading at Rs 2,190,” mentioned Deven Mehata, analyst at Choice Broking.
The inventory is performing effectively above all its important exponential moving averages and has additionally fashioned higher high higher low formation on each day charts indicating energy.
“Maintaining its position above key moving averages and an RSI of 64.83 underscores its positive momentum. Investors may consider initiating positions in TVS Motors, leveraging option strategies to capitalize on potential upside movements,” Mehata added.
Mehata suggests deploying a bull call spread to seize probably the most out of an anticipated upward motion of the inventory.
Bull Call Spread
Bull Call Spread technique is greatest carried out when the outlook for a inventory isn’t very aggressive. It is a two-leg spread technique usually involving an ATM and an OTM choice. In this technique there may be all the time a ‘net debit’ for the dealer.
ETMarkets.comBelow is the payoff graph for the technique:
ETMarkets.com(Source: Choice Broking)
(Disclaimer: Recommendations, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of The Economic Times)