Derivative strategy on Bank Nifty by Sacchitanand Uttekar of MOSL

Here is derivative strategy on Bank Nifty by Sacchitanand Uttekar of Motilal Oswal Securities:

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)

Buy 17,800 PE 29 DEC'16 1 LOT                     

Sell 17,400 PE 29 DEC'16 1 LOT

• Bank Nifty is in Short- Short Unwinding cycle
• Option indicative band suggest 18500 as highest call congestion while 18000 as an immediate put congestion
• Unwinding in 18000 PE could accelerate selling pressure further towards 17,500
• Considering we are participating falling momentum, low risk Bear Put Spread is recommended

Target: 10,000                          

 

Stop Loss: 2,500