Nandish Shah recommends a Bull Spread strategy on Motherson Sumi in F&O

Nandish Shah recommends a Bull Spread strategy on Motherson Sumi in F&O


Bull spread Strategy on MOTHERSON SUMI

Buy OCT 240 CALL at Rs 10.6 & simultaneously sell 260 CALL at Rs 4.8

Lot Size 3500

Cost of the strategy Rs 5.8 (Rs 20,300 per strategy)

Maximum profit Rs 49,700 If closes at or above 260 on 28 Oct expiry

Breakeven Point Rs 245.8


  • We have seen long build-up in the Futures, where we have seen 6% rise (Prov) in the Open Interest with price rising by 6%.

  • The stock price has broken out from the downward slopping trendline, adjoining the highs of 02-June and 28-Sept 2021.

  • RSI and MFI Oscillators are placed above 60 and sloping upwards, Indicating strength in the current uptrend.

  • Plus DI is trading above Minus DI while ADX line has started slopping upwards, Indicating stock is likely to gather momentum in the coming days.

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First Published: Fri, October 08 2021. 08:18 IST


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