Derivative strategy on Bank Nifty from Motilal Oswal Securities

Here is the Derivative strategy for Bank Nifty from Sacchitanand Uttekar:

Option Strategy: BANKNIFTY Put Butterfly Spread ( Nov series)

Buy 18000 PE 1 lot

Sell 17700 PE 2 lots

Buy 17400 PE 1 lot                                

Target:  10000                    

Stoploss: 1000

Rationale:

1.BankNifty had witnessed short built-up in past couple of sessions

2. Highest Put accumulation remains at 18500.  Aggressive unwinding in same could trigger downside momentum in Index. Call Writers are active near 18800-19000 strike

3. Considering high Volatility, Put Butterfly Spread  is recommended

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.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities