Derivative strategy for Nifty from Motilal Oswal Securities

Derivative strategy on Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA, MOSL

Option Strategy:  Nifty (Bear Put Spread)

 

Buy 8300 PE 1 lot             

Sell 8150 PE 1 lot

 

1.      Nifty is in Long- Long unwinding cycle

 

2.      It is trading near the vicinity of its highest call congestion at 8400 without much shift in option band of 8000-8400.

 

3.      Nifty PCR OI too is quoting at 1.17 near the upper band of 1.20. Considering these profit booking could be expected at current level. Thus low risk hedged Bear Put Spread is recommended.

 

Target: Rs.6,500                

Stop Loss: Rs.2,000

 

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.