Option Strategy on Nifty Bank from Chandan Taparia of Motilal Oswal

NIFTY BANK: BULL CALL SPREAD – 28th Sept – Monthly Expiry

 

BUY NIFTY BANK 24700 CALL

SELL NIFTY BANK 25000 CALL

 

RATIONALE

1. It has given a consolidation breakout above 24500 zones

2. Fresh Put writing is seen at 24500 and 24200 strike

3. Buying interest in most of the heavyweight and built up of long position

4. Call unwinding in 24500 and shift in maximum OI congestion suggests further up move

5. Thus low risk Bull Call Spread is recommended

 

STOP LOSS: Rs 3,000

TARGET: Rs 6,000

 

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.