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Derivative strategy on Bank Nifty by Motilal Oswal Securities

Call writing at 24,500 could restrict its upside towards 24,500-24,600

Chandan Taparia  |  Mumbai 

markets, stocks, sensex, nifty, bse, nse
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Derivative strategy on by of Motilal Oswal Securities:
 
Strategy: (BULL CALL SPREAD)


1 LOT OF 24300 CALL
1 LOT OF 24600 CALL
 
Rationale:
 
1.       It has managed to hold above 24000 zones even after the selling pressure in last two week
2.       It has respected to its 50 DEMA and surpassed its falling supply trend line
3.       Intact Put open interest at 24000 and fresh Put writing at higher strikes suggests an up move
4.      Call writing at 24,500 could restrict its upside towards 24,500-24,600
5.      Thus a low risk, is recommended
 
BEP:
MAX RISK: 117 POINTS, Rs 4680
MAX REWARD: 182 POINTS, Rs 7320
 
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Tue, August 29 2017. 08:02 IST
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