 "Buildings are reflected on the glass windows of the NSE (National Stock Exchange) building in Mumbai (Photo: Reuters)")
Option Strategy:
NIFTY : BEAR PUT SPREAD
Buy 9600 PE 1 lot
Sell 9500 PE 1 lot
Target: 4950
SL: 2550
Rationale:
1) Nifty failed to cross 9700
2) Fresh writing at 9600 & 9700 CE could drag the index to lower levels
3) Put unwinding in 9600 strike also suggest that bears are getting grip for a profit booking decline
4) Thus low risk / Hedge strategy Bear Put Spread is recommended
Disclaimer: Chandan Taparia is a Derivatives and Technical Analyst at Motilal Oswal Securities.
