Derivative strategy on Nifty by HDFC Securities

Derivative strategy on Nifty by Nandish Shah, Assistant Vice President, PCG, HDFC Securities

Buy NIFTY (09 MAY EXPIRY) 11,600 PUT at 69

TARGET: Rs 120

STOP LOSS: Rs 35

Rationale:

• Short build up is seen in the Nifty Futures’, where we have seen 13% rises in Open Interest with NIfty falling by 0.70%
• We have seen aggressive call writing at 11700-11800 levels(Weekly expiry).
• Nifty fell more than 150 points from the resistance level of 11800 to close below its 5 day SMA.
• Oscillators and Momentum Indicators like RSI and MACD Indicating weakness.