 "F&O strategies for L&T, Nifty: Shubham Agarwal")
L&T
Strategy: LT Call Ratio Spread
BUY 1600 CE 1 LOT
SELL 1700 CE 2 LOTS
Target Profit: Rs 3500
Stop Loss: Rs 1500
Rationale:
After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.
NIFTY
Strategy: Nifty Call Ratio Spread
Buy 8150 CE
Sell 2 Lots 8350 CE
Target Profit: Rs 2500
Stop Loss: Rs 1000
Rationale:
Despite the move upwards Longs have been missing, some glimpse of it was seen on Monday. Head room remains open up to 8300-8400 (Call Congestion). Considering the move already in place and lack of lot of longs, Call Ratio spread cane be considered
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.
Strategy: LT Call Ratio Spread
BUY 1600 CE 1 LOT
SELL 1700 CE 2 LOTS
Target Profit: Rs 3500
Stop Loss: Rs 1500
Rationale:
After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.
NIFTY
Strategy: Nifty Call Ratio Spread
Buy 8150 CE
Sell 2 Lots 8350 CE
Target Profit: Rs 2500
Stop Loss: Rs 1000
Rationale:
Despite the move upwards Longs have been missing, some glimpse of it was seen on Monday. Head room remains open up to 8300-8400 (Call Congestion). Considering the move already in place and lack of lot of longs, Call Ratio spread cane be considered
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.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities