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Derivative strategy on Bank Nifty from Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Sacchitanand Uttekar  |  Mumbai 

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Here is derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities

Option Strategy: Bank (Ratio Call Spread)

Buy Dec 19000 CE 1 lot   Sell Dec 19500 CE 2 lots

Target: 6000                      
SL: 1500                
Hedge: Buy Future if goes above 19,800

Rationale:

  • View on the Bank remains neutral mainly led by poor rollover. Traces of Short covering was noticed beginning December expiry
  • Proximity to highest Put concentration (18000) raises expectation of pull back. In case of further uptick short covering in CE could provide momentum push
  • Since we are attempting to play a pullback, it makes sense to keep downside limited. Thus Ratio Call Spread is recommended

Disclaimer: ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

is an Equity Technical Analyst at Motilal Oswal Securities

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Derivative strategy on Bank Nifty from Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities
Here is derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities

Option Strategy: Bank (Ratio Call Spread)

Buy Dec 19000 CE 1 lot   Sell Dec 19500 CE 2 lots

Target: 6000                      
SL: 1500                
Hedge: Buy Future if goes above 19,800

Rationale:

  • View on the Bank remains neutral mainly led by poor rollover. Traces of Short covering was noticed beginning December expiry
  • Proximity to highest Put concentration (18000) raises expectation of pull back. In case of further uptick short covering in CE could provide momentum push
  • Since we are attempting to play a pullback, it makes sense to keep downside limited. Thus Ratio Call Spread is recommended

Disclaimer: ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

is an Equity Technical Analyst at Motilal Oswal Securities
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Business Standard
177 22

Derivative strategy on Bank Nifty from Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here is derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities

Option Strategy: Bank (Ratio Call Spread)

Buy Dec 19000 CE 1 lot   Sell Dec 19500 CE 2 lots

Target: 6000                      
SL: 1500                
Hedge: Buy Future if goes above 19,800

Rationale:

  • View on the Bank remains neutral mainly led by poor rollover. Traces of Short covering was noticed beginning December expiry
  • Proximity to highest Put concentration (18000) raises expectation of pull back. In case of further uptick short covering in CE could provide momentum push
  • Since we are attempting to play a pullback, it makes sense to keep downside limited. Thus Ratio Call Spread is recommended

Disclaimer: ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

is an Equity Technical Analyst at Motilal Oswal Securities

image
Business Standard
177 22

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