Dalmia Bharat’s share price has been dropping since January after hitting resistance near the ₹2,630 level. In June, the stock hit a low of ₹1,651 but has since bounced back, indicating a possible upward movement.
Current Performance
Recently, the stock has been trading in a consolidated range and is facing minor resistance around ₹1,915. It is currently trading above its 10, 20, and 50-day exponential moving averages (EMAs) but remains below the 200-day EMA.
Expert Opinion
Madhu Bansal, founder of The Finberg, notes that the stock has been taking support at the daily 20-day EMA for the past eight days, showing signs of an upward trend. The stock is trading near last week’s high and has been forming higher lows since May 2024, indicating strength.
Compared to peers like Ultracemco, ACC, and JKCEMENT, Dalmia Bharat has been outperforming in July 2024. The MACD indicator shows a bullish signal, with the stock trading above both the center and signal lines. However, Bansal warns that the stock is volatile and should be traded cautiously.
Strategy: Debit Spread
Given the stock’s technical setup, Bansal recommends using a Debit Spread strategy to benefit from a potential upward move.
How Debit Spread Works
This strategy involves buying a call option with an in-the-money (ITM) or at-the-money (ATM) strike price and selling a call option with an out-of-the-money (OTM) strike price. The wider the spread between the long call and the short call, the higher the premium paid, and the greater the maximum potential profit.
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