Here are a few derivative strategies from Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal Securities for trade today:
JUST DIAL JULY FUT.
Reco: SELL
Target : Rs 554
Stop Loss: Rs 610
Mature continuation pattern on the daily scale indicates the bearish trend to extend further. Fresh shorts could be initiated with a stop at Rs 610 for a trading target upto Rs 554.
Option strategy:
Nifty: Call Butterfly Spread
Buy 8500 Ce July 1lot
Sell 8700 Ce July 2 lots
Buy 8900 CE July 1 lot
Target: Rs 11370
Stop Loss: Rs 3630
Rationale: Nifty is in long- long Unwinding cycle. Option data suggest shift in option band to 8700. Put concentration remain in band of 8200-8400. Unwinding in OTM Calls in July series would auger directional move on higher side. Considering falling volatility and to benefit from theta decay, Long Call Butterfly Spread is recommended.
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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities
