Stocks to buy today, January 24: Amidst the fluctuations in the Indian stock market, IRCTC shares have also witnessed strength. Strong signs such as short coverings and technical breakouts are making this stock attractive to investors. According to experts, IRCTC in current situation Bull spred Strategy can be a better option.
Under this strategy, investors can buy 800 call options of IRCTC with an expiry on January 30 and can sell 820 call options for ₹ 5. According to 875 lot size, the total cost of this strategy is ₹ 6 per share i.e. ₹ 5,250.
If the IRCTC stock closes ₹ 820 or above on 30 January, then this strategy can make a maximum profit of ₹ 12,250. The breakeven point of this strategy is ₹ 806, and the risk-relieved ratio is 2.33. A margin of about ₹ 24,300 will be required for this trade.
Nandish Shah, Senior Technical and derivative analyst of HDFC Securities, says IRCTC futures have seen a 3% open interest decline and a price of 3%, indicating short covering. In addition, the stock has a breakout on the daily chart, achieving the highest level after 3 January. Stock has broken the downward sloping trendline connecting on 12 December 2024 and 20 January 2025. Also, Momentum indicators such as RSI and MFI are above 50, making the current boom stronger.
Nandish Shah’s advice is that as soon as the Return on Investment (ROI) in this strategy is more than 20%, the profit should be booked.
,Disclaimer: This is his personal opinion. Be sure to consult an expert before investment.)