Derivative strategy on Bank Nifty from Motilal Oswal Securities

Derivative strategy on Bank Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA at 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 (29DEC 2016)

Buy 17800 PE 1 lot            

Sell 17400 PE 1 lot

Target: 10000     

Stoploss: 2500   

            

Rationale:

• Bank Nifty is in Short- Short Unwinding cycle
• Option indicative band suggest 18500 as highest call congestion while 18000 as immediate put congestion
• Unwinding in 18000 PE  could accelerate selling pressure further towards 17500
• Considering we are participating falling momentum, low risk Bear Put 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.