 "Derivative strategy on Bank Nifty by Sacchitanand Uttekar of MOSL")
Here is derivative strategy on Bank Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities:
Option Strategy: Bank Nifty (Bear Put Spread)
Buy 17,800 PE 29 DEC'16 1 LOT
Sell 17,400 PE 29 DEC'16 1 LOT
- Bank Nifty is in Short- Short Unwinding cycle
- Option indicative band suggest 18500 as highest call congestion while 18000 as an immediate put congestion
- Unwinding in 18000 PE could accelerate selling pressure further towards 17,500
- Considering we are participating falling momentum, low risk Bear Put Spread is recommended
Target: 10,000
Stop Loss: 2,500