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Option Strategy on Bank of Baroda by Motilal Oswal Securities

Short covering followed by fresh long suggests a bounce back move on the stock

Chandan Taparia  |  Mumbai 

market flat, sensex, bse, nse, nifty, stock

Strategy:

Option Strategy:

: BULL CALL SPREAD
Buy 165 CE 1 lot
Sell 170 CE 1 lot

Reward : 11200                     Risk : 6300

Rationale:
 
1. It has given reversal on weekly chart by forming a Hammer candle
2. Short covering followed by fresh long suggests a bounce back move
3. Fresh Put writing at 160 strike could provide the support
4. Call unwinding in 165 and 170 strike propel for an up move
5. Thus low risk strategy Bull Call Spread is recommended

Disclaimer: is a Derivatives and Technical Analyst at

The analyst may have positions in any or all the stocks mentioned above.

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