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Derivative strategy on Reliance Industries by Motilal Oswal Securities

Derivative strategy on Reliance Industries by Chandan Taparia of Motilal Oswal Securities

Chandan Taparia  |  Mumbai 

A man walks past an advertisement of Reliance Industries Limited at a construction site in Mumbai
A man walks past an advertisement of Reliance Industries Limited at a construction site in Mumbai

Option Strategy: (Call Ladder Spread)
 
Buy 1340 CE 1 lot

Sell 1400 CE 1 lot
Sell 1420 CE 1 lot
 
Rationale:
 
1.       Reliance has respected its multiple support of 1300 and formed a double bottom
 
2.      Fresh writing at 1340 PE could provide support while unwinding in 1340, 1360, 1380 could attract a bounce
 
3.      Maximum Call OI is at 1400 strike which could restrict its upside momentum.
 
4.      Thus low risk Call Ladder Spread is recommended
 
 
Target: Rs 10,000                    
STOP LOSS: Rs 4,000
Hedge: Buy Future Above 1,460
 
Disclaimer: is a Deivatives and Technical Analyst at Securities.

First Published: Tue, June 13 2017. 08:23 IST
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