 "F&O Strategy: Nandish Shah recommends a Bear Spread strategy on Nifty")
Bear spread Strategy on NIFTY
Buy NIFTY 17,800 PUT at Rs 122 & simultaneously sell 17,500 PUT at Rs 47 (EXPIRY 03 NOV)
Lot Size 50
Cost of the strategy Rs 75 (Rs 3,750 per strategy)
Maximum profit Rs 11,250 If NIFTY closes at or below 17,500 on 03 Nov expiry.
Breakeven Point Rs 17,725
Rationale:
Buy NIFTY 17,800 PUT at Rs 122 & simultaneously sell 17,500 PUT at Rs 47 (EXPIRY 03 NOV)
Lot Size 50
Cost of the strategy Rs 75 (Rs 3,750 per strategy)
Also Read
Maximum profit Rs 11,250 If NIFTY closes at or below 17,500 on 03 Nov expiry.
Breakeven Point Rs 17,725
Rationale:
- We have seen short build up in the Nifty Futures, where we have seen 23%(Prov) rise in the Open Interest with Nifty falling by 2%.
- Nifty has closed below its 20-day EMA, first time since 30-July 2021
- RSI and MFI Oscillators are placed below 60 and sloping downwards, Indicating strength in the current downtrend
- Nifty has breached the crucial support of its previous swing top of 17947 levels
===========================
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.
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%