ALSO READDerivative strategy on Reliance by Motilal Oswal Securities Derivative strategy on Nifty by Motilal Oswal Securities Derivative strategy on Nifty by Motilal Oswal Securities Derivative strategy on Axis Bank by Motilal Oswal Securities Nifty outlook and stock picks from Chandan Taparia at MOSL
Buy 1340 CE 1 lot
Sell 1400 CE 1 lot
Sell 1420 CE 1 lot
Reliance has respected its multiple support of 1300 and formed a double bottom.
Fresh writing at 1340 PE could provide support while unwinding in 1340, 1360, 1380 could attract a bounce.
Maximum Call OI is at 1400 strike which could restrict its upside momentum.
Thus low risk Call Ladder Spread is recommended.
TARGET: Rs 10,000
STOP LOSS: Rs 4,000
Hedge: Buy Future Above 1,460
Disclaimer: Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.