Derivative strategy on Reliance by Motilal Oswal Securities

Derivative strategy on Reliance by Chandan Taparia of Motilal Oswal Securities:
 
OPTION STRATEGY: Reliance (Call Ladder Spread)
 
Buy 1300 CE  1 lot
Sell 1340 CE 1 lot
Sell 1400 CE 1 lot
 
Rationale:

1. Reliance has been consolidating in last few trading session.

2. Put built-up at 1240-1260 could provide immediate support while unwinding in 1260 CE could propel momentum above 1300.

3. Considering positive bias and to participate bullish momentum, Call Ladder Spread is recommended.
 
Target: 17,000 between 1340-1400

Stop Loss: Rs. 2,100 below 1,300

Hedge: Buy future above 1,420