The short- and medium-term outlook is positive for Just Dial (₹765.60) though the long-term outlook is still negative.
If the current trend sustains, Just Dial could test resistance at ₹852, while it finds immediate support at ₹663.
A close below ₹566 will alter the current bullish view on the stock and a conclusive close above ₹1,084 will even change the long-term outlook to positive for Just Dial.
Strategy: Traders can consider a bull-call spread on Just Dial. This can be initiated by selling ₹760-call that closed at ₹20.75 and, simultaneously, buying the ₹740-call, which closed at ₹27.85.
As the market lot is 1,400 shares, this strategy will cost traders ₹9,940, which would be the maximum loss one can suffer.
If the stock settles at ₹740 or below, the maximum loss will happen.
A maximum profit of ₹18,060 is possible if Just Dial closes at or above ₹760 at the time of expiry.
We advice traders to hold the position till expiry of June contracts.
Follow-up: Hold Lupin positions.