Shriram Finance shows a strong bullish structure on the daily chart, characterized by a classic higher high-higher low formation, which is a well-known bullish continuation pattern. The stock has gained support near the 20-day EMA and has recently formed a strong bullish candle, reflecting aggressive buying interest and strong demand at lower levels. The stock is trading close to its all-time high and has been consolidating for a few days and has led a breakout of this consolidation, indicating a continuation of the trend and new upside momentum. The recent price action shows strong follow-on buying and successful absorption of supply at higher levels.Currently, the stock is trading around Rs 1085.90 on stable volumes, reflecting continued accumulation and strong market participation. Technically, the trend remains robust as the stock is trading well above the 20-, 50-, 100-, and 200-week EMAs, all of which are moving higher. The daily RSI at 63.82 reflects healthy bullish momentum without overbought conditions, indicating room for further upside potential. Investors may want to consider long positions near current levels. The positional support is at Rs 1040, above which the overall bullish bias remains intact.
ETMarkets.com
Bull Call Spread (Bullish Strategy)
Buy SHRIRAMFIN 30 Mar 26, 1090 CE 1 lot @ 38
Sale SHRIRAMFIN 30 Mar 26, 1110 CE 2 lots @ 28.65
Live events
Buy SHRIRAMFIN 30 Mar 26, 1120 CE 1 lot @ 24.25
Maximum Loss: Rs 4,084 under 1090 (at expiry) Maximum Profit: Rs 12,416 at 1110 (at expiry)Maximum Profit: Rs 4,590 above 1120 (at expiry)
Required margin: Rs 62,659
Break even: 1095
Duration: until expiration date
(The author, Aakash Shah is a derivatives analyst at Choice Broking)
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
