United Spirits Ltd shares have achieved a price-volume breakout on the daily charts and are currently trading above the breakout zones in recent market movements.
"The stock is in a higher highs and higher lows cycle and is on the verge of breaking above recent resistance levels on the daily charts," said Arun Kumar Mantri, Founder of Mantri Finmart.
To capitalise on the upside momentum, Arun Kumar Mantri suggests a covered call strategy:
Trade Setup:
Buy one lot of United Spirits September futures at Rs 1,485
Sell one lot of United Spirits September 1520 call at Rs 25
BEP: Rs 1,460
Max Loss: Unlimited below BEP
Max Profit: Rs 42,000
Technical View
The United Spirits stock has shown a strong price-volume breakout on the daily charts and continues to trade above breakout zones in recent market movements. It is trading well above its major moving averages, and the Bollinger Band (20,2) suggests further price appreciation. Support is found in the Rs 1,440-Rs 1,450 range, while near-term resistances are at Rs 1,520 and Rs 1,540.
The stock is in a higher highs and higher lows cycle and is nearing a breakout above recent resistance levels on the daily charts. The recent price performance indicates strength, suggesting the positive momentum will continue in the coming days. The counter is comfortably trading above its 21, 50, 100, and 200 DEMA on both daily and weekly charts, underscoring its strength. Leading indicators such as Parabolic SAR and MACD also point to a positive trend in the near term.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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