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F&O Strategy: Nandish Shah recommends this strategy for the May expiry

The derivative analyst from HDFC Securities recommends buying Kotak Bank 1,780 Put and simultaneously selling 1,760 Put for the May expiry.

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Nandish Shah Mumbai
BEAR SPREAD Strategy on KOTAK MAHINDRA BANK

Buy KOTAK BANK (26-May Expiry) 1,780 PUT at Rs 29 & simultaneously sell 1,760 PUT at Rs 20

Lot Size 400

Cost of the strategy Rs 9 (Rs 3,600 per strategy)

Maximum profit Rs 4400 If Kotak Mahindra Bank closes at or below 1760 on 26 May expiry.

Breakeven Point Rs 1771

Rationale:

  • We have seen short buildup in the Kotak Bank futures where we have seen 7 per cent addition (Prov) with Kotak Bank falling by 3.5 per cent.
     
  • Short term trend of the Kotak Bank turned negative as it has closed below its 5

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First Published: May 20 2022 | 7:48 AM IST

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