JK Jain at Karvy Stock Broking told CNBC-TV18, "In Adani Ports yesterday there was closure of short positions and in today’s trade there has been fresh long positions build up in the stock. Even technically the stock has given a strong breakout and we have seen significant buying in the options as well."
"On that basis we are giving a bull call spread buying 310 Call option which is trading close to Rs 15 and simultaneously sell the 330 higher Call option which is trading close to Rs 7. The net spread would be around Rs 8 which would be the maximum loss with the expiry point of view if the stock expires below 310. The maximum gains would be Rs 12 if the stock expires above 330," he added.
"We expect this spread of Rs 8 to widen to Rs 12-13 as the stock moves higher towards Rs 320-325 mark in the coming days. So based on trading purpose also we would recommend you to buy this Bull Call Spread between 310 Call and 330 at Rs 8 for targets of around Rs 12-13 in the next one week. Keeping a spread stoploss of Rs 5.5 recommended trading bull call spread in Adani Port," he said.
Disclosure: Analyst doesn't hold the above stock but would have advised to his associates and the company they might be holding it.
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