The outlook remains positive for the stock of IDFC First Bank (₹59.35). It finds a support at ₹53 and the next major one at ₹46. A close below the latter will change the short-term outlook negative. The stock finds an immediate resistance at ₹61.50 and the major one at ₹67. A close above ₹67 will change the long-term outlook positive. In that event, the stock could reach ₹80 level.

F&O pointers: IDFC First Bank has witnessed a rollover of 24 per cent to next month series. IDFC First Bank February futures at ₹59.85 against January contract price of ₹59.45 indicates rollover of only a few long positions. However, rollover will pick up during this week only. Option trading indicates a range of ₹55 and₹70.

Event: The Union Budget will be presented on February 1 which can increase the volatility across the market.

Strategy: Traders could consider a diagonal calendar bull-call spread on IDFC First Bank. This can be constructed by selling the current month 59-call and simultaneously buying the 60-call of February month. These options closed with a premium of ₹1.45 and ₹2.75 respectively. As the market lot is 15,000, this would cost traders ₹19,500, which would be the maximum loss (₹2.75-1.45).

Profit potentials are high if the stock falls or stays flat till this expiry and rises sharply Post Budget. A close above ₹61.30 will make the position break-even. We advise traders to enter the position when the net premium is in the ₹1-1.5 range and exit anywhere between ₹2-2.25. Initial stop loss can be placed at ₹1 which can be shifted suitably.

Follow-up: Traders can exit Jubilant Foodworks with marginal profits.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading