 "Derivative strategy for Bank Nifty from MOSL")
Derivative strategy on Bank Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA, MOSL:
Option Strategy: Bank Nifty (Modified Bull Call Spread - Expiry: 25 January 2016)
Buy 18600 CE 1 lot
Sell 19000 CE 1lot
1. Bank Nifty is in Short Unwinding cycle
2. Option indicative band suggest 19,000 as highest call congestion while 18,000 as an immediate put congestion
3. Unwinding in 18,500 CE could accelerate buying momentum towards 19,000
4. Considering we are participating rising momentum, Modified Bull Call Spread is recommended
Target: Rs 9,000
Stop Loss: Rs 3000
Disclaimer: Motilal Oswal Securities ( 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.
Option Strategy: Bank Nifty (Modified Bull Call Spread - Expiry: 25 January 2016)
Buy 18600 CE 1 lot
Sell 19000 CE 1lot
Also Read
Sell 17300 PE 1 lot
1. Bank Nifty is in Short Unwinding cycle
2. Option indicative band suggest 19,000 as highest call congestion while 18,000 as an immediate put congestion
3. Unwinding in 18,500 CE could accelerate buying momentum towards 19,000
4. Considering we are participating rising momentum, Modified Bull Call Spread is recommended
Target: Rs 9,000
Stop Loss: Rs 3000
Disclaimer: Motilal Oswal Securities ( 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.
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