 "Derivative strategy on Nifty Bank by MOSL")
Derivative strategy on Nifty Bank by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL:
Strategy: Nifty Bank (Ratio Call Spread)
Buy 20500 CE 23FEB’17 1 lot
Sell 21000 CE 23FEB’17 2 lots
Rationale:
Nifty Bank is in long-long Unwinding Cycle
Option data shows highest put concentration at 19500/19000 indicating support zone
Any unwinding in 20000 CE could lead to option trigger thereby fuelling the momentum towards 20,500-21,000
Considering falling volatility, Ratio Call Spread is recommended
Target: Rs 15,000 around 20,800
Initial Outflow: Rs 3,000
Hedge: Above 21,350
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.
Strategy: Nifty Bank (Ratio Call Spread)
Buy 20500 CE 23FEB’17 1 lot
Also Read
Rationale:
Nifty Bank is in long-long Unwinding Cycle
Option data shows highest put concentration at 19500/19000 indicating support zone
Any unwinding in 20000 CE could lead to option trigger thereby fuelling the momentum towards 20,500-21,000
Considering falling volatility, Ratio Call Spread is recommended
Target: Rs 15,000 around 20,800
Initial Outflow: Rs 3,000
Hedge: Above 21,350
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.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%