Deploy Bull Call Spread in Apollo Hospitals for benefits from bullish view

Apollo Hospitals shares are currently showing a bullish pennant pattern.
Synopsis Apollo Hospitals shares are currently trading at Rs 7,114. The stock shows a bullish pennant pattern. This suggests a possible upward movement. Analysts recommend a Bull Call Spread. This strategy aims to profit from the expected rise. Support is seen at Rs 7,000. A move above Rs 7,114 could fuel further gains. The RSI indicates strengthening momentum. The shares of Apollo Hospitals were trading at Rs 7,114 on Tuesday, consolidating after a strong bounce from lower levels, indicating a healthy pause within an ongoing uptrend.
ADVERTISEMENT The stock has recently formed a Bullish Pennant pattern on the daily chart—a continuation pattern—and has now given a decisive breakout above this formation.
'This price action signals the potential for further upside, provided the stock sustains above the breakout zone, supported by continued buying interest,' said Hardik Matalia, Derivatives Analyst at Choice Broking.
Technically, the stock is maintaining a strong structure as it comfortably trades above all its key moving averages—short-term, medium-term, and long-term EMAs—indicating a stable and upward trend across multiple timeframes.'This alignment adds strength to the ongoing bullish momentum and reflects improving price stability,' Matalia added.
ADVERTISEMENT The Relative Strength Index (RSI) is currently at 62.11, trending upward, which further confirms the strengthening momentum. The RSI's trajectory suggests increasing bullish pressure, enhancing the conviction for a continued up move as buyers remain active.From a derivatives perspective, the data supports the bullish setup. The highest Call Open Interest (OI) is placed at Rs 7,100, and with the stock now trading above this level, any further rise could trigger short covering, adding fuel to the rally.
ADVERTISEMENT On the flip side, the highest Put OI is at Rs 7,000, which now serves as a strong support zone, providing a cushion against potential downside risks.Matalia believes that if the stock manages to sustain above the breakout level, the stock could gain upward momentum in the coming sessions, potentially aiming for higher levels in the medium term.
ADVERTISEMENT 'A sustained move above Rs 7,114 will confirm trend continuation and could attract further buying interest, reinforcing the bullish outlook,' he noted.With this, Hardik Matalia suggests deploying a Bull Call Spread in Apollo Hospitals for potential gains from the bullish momentum.
Bull Call Spread
ADVERTISEMENT Traders may deploy a Bull Call Spread to monetize gains from a potential market rebound. It involves buying and selling call options with the same expiration but different strike prices. The purchased call is typically in-the-money (ITM) or at-the-money (ATM), while the sold call is out-of-the-money (OTM). This strategy results in a net debit for the trader, as the cost of the ITM/ATM call is partially offset by the cash flow generated from shorting the OTM call.(Prices as of June 16)Below is the payoff graph of the strategy:(Source: Choice Broking)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained
Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms
Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips
L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first?
Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more
SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders
API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading
Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains
Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains
NEXT STORY

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

26 minutes ago

• Business Standard

HCs not custodian of revenue department, says SC; stays Bombay HC order

High courts are not the "custodian" of the revenue department, the Supreme Court has said while dealing with a petition challenging a Bombay High Court order that stayed a tribunal's direction for a refund of Rs 256.45 crore to a firm. A bench of Justices Ujjal Bhuyan and Manmohan observed that prima facie, the high court could not have stayed the order after holding that the appeal filed by the Commissioner of CGST and Central Excise, Belapur Commissionerate, was not maintainable. "A high court is not the custodian of the revenue," the apex court, which stayed the high court's June 12 order, observed. "Prima facie, the high court could not have passed the order of stay after holding the appeal to be not maintainable and after recording that the writ petition and the appeal are disposed of as not pressed," the bench said in its order passed on June 20. The top court passed the order while hearing a plea filed by the firm, challenging the high court order. The bench noted that the high court had disposed of a writ petition as well as an appeal filed by the revenue department. It also noted that the appeal was filed under section 35G of the Central Excise Act, 1944 against a January 2025 order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai that allowed the Service-Tax appeal of the firm. The apex court said subsequently, the company filed an application for the release of the amount, which was allowed in May. It noted that the high court had recorded in its June 12 order that both the petition and the appeal were "disposed of as not pressed with liberty to the respondent to prefer appeal before the Supreme Court, the high court has stayed the direction of CESTAT for refund for a period of eight weeks". The bench issued a notice to the revenue department, seeking its response within six weeks on the firm's plea challenging the high court order. "In the meanwhile, impugned order of the high court dated June 12, 2025 shall remain stayed," the bench said. "This order shall, however, not preclude the respondent from filing appeal before this court under section 35L of the Central Excise Act, 1944, if not already filed, which shall be decided on its own merits and/or limitation," the bench said and posted the matter for further hearing on July 2.

Time of India

32 minutes ago

• Time of India

Vishnusurya Projects to execute Rs 23.57 cr order at SAIL's Bokaro unit

Construction and infrastructure company Vishnusurya Projects and Infra Ltd has secured an order worth Rs 23.57 crore, from Gorantla Geosynthetics Ltd for replacement and construction of Benzol storage unit, Benzol Recovery Plant-2 and By-Product Plant in Bokaro Unit of Steel Authority of India Ltd , a top official said. In a steel plant, Benzol Recovery Plant-2 (BRP-2), Coke Oven (CO) and By-Product Plant (BPP) are key components and as part of the order, Vishnusurya Projects is expected to execute the order within 12 months. This environmental engineering order is part of the company's solid waste management segment Vishnusurya Projects said in a company statement here on Saturday. "Our operational metrics remained robust, supported by strong client retention, high project execution standards and continued market relevance despite inflationary pressures on raw materials amid additional headwinds," company Director and CEO V Sanal Kumar said. "Our focused investment in high-margin and strategically aligned projects ensure optimal capital utilisation and risk-adjusted returns," he said. Live Events As of March 2025, the company's order book stood at Rs 330 crore, the company said.

Time of India

36 minutes ago

• Time of India

Tata AIA launches two new funds to cater to the wealth and retirement planning

Tata AIA Life Insurance has announced the launch of two new funds -Tata AIA Top 200 Alpha 30 Index Fund and Tata AIA Top 200 Alpha 30 Pension Fund - that brings a powerful opportunity to grow wealth and secure future through life insurance-linked investment products. These two new funds are designed to help an investor make the most of India's economic ascent. For those looking to grow their wealth while securing their family's financial future – Tata AIA Top 200 Alpha 30 Index Fund whereas for those focused on building a strong retirement corpus with equity-driven growth – Tata AIA Top 200 Alpha 30 Index Pension Fund These funds will open for investment on June 23, and are available at just Rs 10 per unit during the New Fund Offer (NFO) period, ending June 30, 2025. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Iraq: New Small Electric Car For Seniors. Prices Might Surprise You. Electric Cars | Search Ads Undo Investments will be made through Tata AIA Life Insurance's unit linked insurance plans, offering you the dual benefit of life insurance coverage and potential wealth growth. According to Tata AIA, one should invest in these funds as India's economy is poised for growth, supported by a young workforce, rapid urbanisation, strong policy reforms, and key initiatives like 'Make in India' and PLI schemes. These funds are your opportunity to benefit from this promising growth. Live Events Secondly, these funds are powered by the Nifty 200 Alpha 30 Index, which picks 30 top-performing stocks with a history of delivering better-than-market returns (alpha). That means smarter stock selection and potential for higher growth. Thirdly, whether you want to build a strong financial foundation for your family or create a retirement fund, these funds are crafted to help you grow your money over time—thanks to their focused, high-growth equity exposure. And lastly, beyond wealth creation, consumers can secure their families' financial future with life cover. The Tata AIA Top 200 Alpha 30 Index Fund and Tata AIA Top 200 Alpha 30 Pension Fund are strategically designed to capitalize on these trends, investing in companies poised to benefit from India's growth story. " India stands at the threshold of a transformative multi-decade economic growth phase. Our new funds are positioned to capitalise on this promising trajectory, offering investors an equity instrument based on rigorous data analysis and superior risk-adjusted returns. These funds aim to capitalise on a promising trend, offering investors significant long-term value by consistently enhancing their financial security,' said Harshad Patil, Chief Investment Officer at Tata AIA Life Insurance. The investment objective of the fund is long-term capital appreciation through investment in high-alpha stocks They will be benchmarked against Nifty 200 Alpha 30 Index. The asset allocation will be 80%-100% in equity & equity-related instruments, 0%-20% in cash & money market securities Top 200 Alpha 30 Index Fund: Consumers can invest in the fund and be part of India's long-term growth story. The fund is available with the following Tata AIA solutions: Tata AIA Param Raksha Life Growth +, Tata AIA Param Raksha Life Pro, Tata AIA Param Raksha Life Pro+, Tata AIA Param Raksha Life Maxima+, Tata AIA Param Raksha Life Advantage+, Tata AIA Pro Fit, Tata AIA Shubh Muhurat and Tata AIA Shubh Fortune. Top 200 Alpha 30 Index Pension Fund: Investment in the Top 200 Alpha 30 Index Pension Fund is exclusively available with Tata AIA's unit-linked pension solution, Smart Pension Secure Plan, which enables consumers to build a robust retirement fund with long-term growth potential.