F&O Radar: Deploy Bull Call Spread in IndusInd Bank to gain from potential upmove
IndusInd Bank reached an all-time high of Rs 1,694.50 in January 2024, after which the stock began a downward trend. Currently trading at Rs 1,449.05, it has recently broken out of a falling trend line on the daily chart, with a notable increase in trading volume.
This breakout suggests potential for further gains. The stock has rebounded from its support zone and surpassed key moving averages, including the short-term (20-day) EMA, medium-term (50-day) EMA, and long-term (200-day) EMA, indicating a strengthening trend.
“The Relative Strength Index (RSI) is at 65.77 and trending upwards, signaling increased buying pressure and the likelihood of a continued bullish trend. If the prices can maintain the position above the Rs 1,460 level, it could advance towards higher price targets of Rs 1,500 and Rs 1,535,” said Hardik Matalia, Derivative Analyst at Choice Broking.
Options data further supports this outlook. The highest concentration of put open interest is at the 1,440 and 1,400 strike prices, suggesting these levels could serve as immediate support. Conversely, the highest call open interest is at the 1500 strike, indicating potential resistance.
Matalia added that a decisive breakout above this resistance zone could trigger short covering, potentially driving the stock on an upward trajectory.
Given this situation, Matalia suggests deploying Bull Call Spread in IndusInd Bank to gain from the potential upmove.
Bull Call Spread
A bull call spread is an options strategy employed when a trader anticipates a
