F&O Radar: Deploy Bull Call Spread in Tech Mahindra to capitalise from potential upmove
Tech Mahindra looks well placed on charts as the stock is standing above its significant moving averages.
On June 6, a golden crossover was also formed on the chart, an indication of a potential bullishness of the security, when the 10-day EMA crossed over the 20-day EMA.
The stock made a new all-time high on Jan 23 at the 1,416 level, from where it started trending downwards, making a low at 1,162 where it took support and resumed its upward journey.
The stock has been making higher highs and higher lows since then.
“TECHM showcases promising technical indicators with the stock forming a strong bullish candle on the daily chart, and decent volumes indicating strength,” said Deven Mehata, Analyst at Choice Broking.
The stock is currently trading at 1,393 levels and has also formed a consolidation near resistance on the daily chart as it faces a minor resistance at 1,405 levels.
“A breakthrough above this barrier could propel it towards the target of 1,440 and above,” added Mehata.
Mehata said that while the stock maintains its position above its short-term (20 Day), medium-term (50-Day), and long-term (200-Day) moving averages and an RSI of 64.29, it underscores a positive momentum and traders may consider initiating positions in Tech Mahindra, leveraging a Bull Call Spread option strategies to capitalize on potential upside movements.
Bull Call Spread
A bull call spread is an options trading strategy that uses two call options. It is deployed usually when a trader anticipates a moderate rise in the price of
