 "Derivative strategy for Nifty from Motilal Oswal Securities")
Mentioned below if the derivative strategy for Nifty in today's trade:
Option Strategy
Nifty: Modified Bear Put spread
Sell 8100 PE Jun 1 lot
Sell 8400 CE Jun 1 lot
Target: Rs 5000
Stop Loss: Rs 2250
Rationale: Nifty is gyrating in range of 8200-8300. Option Indicative band narrows to 8100-8300. Unwinding in 8200 PE augurs well for short term correction. Call built-up at 8300 could act as immediate resistance. Considering consolidation in Nifty and to benefit from immediate correction, Modified Bear Put Spread is recommended.
Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities
Option Strategy
Nifty: Modified Bear Put spread
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Buy 8200 PE Jun 1 lot
Sell 8100 PE Jun 1 lot
Sell 8400 CE Jun 1 lot
Target: Rs 5000
Stop Loss: Rs 2250
Rationale: Nifty is gyrating in range of 8200-8300. Option Indicative band narrows to 8100-8300. Unwinding in 8200 PE augurs well for short term correction. Call built-up at 8300 could act as immediate resistance. Considering consolidation in Nifty and to benefit from immediate correction, Modified Bear Put Spread is recommended.
Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities