Derivative strategy on Nifty by Motilal Oswal

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL

People walk past the Bombay Stock Exchange (BSE) building in Mumbai (Photo: Reuters)
People walk past the Bombay Stock Exchange (BSE) building in Mumbai (Photo: Reuters)
Chandan Taparia Mumbai
Last Updated : Mar 21 2017 | 8:55 AM IST
Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

OPTION STRATEGY:

NIFTY : Bull Call Ladder Spread

Buy 9200 CE 1 lot
Sell 9300 CE 1 lot
Sell 9350 CE 1 lot

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Target Profit: Rs 6000
Stop Loss: Rs 1500

Hedge : Buy Future above 9420

Rationale:

1. Nifty is in long-long unwinding cycle
2. Proximity to the highest call at 9200 and any unwinding in same could see momentum accelerating
3. Incremental addition in 9000 & 9100 PE could provide immediate support to the market
4. As we are participating in bullish momentum and to benefit from theta decay, Bull Call Ladder 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.

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.

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