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Option strategy on Nifty by Motilal Oswal Securities

Nifty failed to cross 9700 and broken immediate support of 9580 zone

Chandan Taparia  |  Mumbai 

Sensex, Nifty, Markets

Option Strategy:

: BEAR PUT SPREAD
Buy 9600 PE 1 lot
Sell 9500 PE 1 lot

Target: 4950                     
SL: 2550

Rationale:

1.       failed to cross 9700 and broken immediate support of 9580 zone

2.       It has been lower lows from last five sessions

3.       Fresh writing at 9600 & 9700 CE could drag the index to lower levels

4.       Put unwinding in in 9600 strike also suggest that bears are getting grip for a profit booking decline

5.       Thus low risk / Hedge strategy Bear Put Spread is recommended

Disclaimer: is a Derivatives and Technical Analyst at Motilal Oswal Securities. 

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