Derivative strategy on Bank Nifty from Motilal Oswal Securities

Here is the derivative strategy Bank Nifty from Sacchitanand Uttekar:

Option Strategy: BAN KNIFTY (Modified Bull Call Spread)

Buy 03 Nov 19500 CE Oct 1 lot     

Sell 03 Nov 19700 CE Oct 1 lot      

Sell 03 Nov 18900 PE Oct 1 lot

Target: Rs 6500               

SL: 2500, Hedge below 18900                           

Rationale:

· BANK NIFTY is in Long- Long Unwinding cycle

· Positive sector outlook along with long rolls raise expectation of pullback in next week

· As we are playing for momentum, Weekly Banknifty expiry option 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

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