Derivative strategy on Nifty by Motilal Oswal Securities

Derivative strategy on Nifty by Chandan Taparia of Motilal Oswal Securities:

 

STRATEGY: NIFTY (Long Strangle)

 

Buy 9300 CE  1 lot

Buy 9100 PE 1 lot

 

Rationale:

 

1.       Nifty Index is gyrating in the band of 9100-9300 in past few trading sessions.

 

2.       India VIX is trading near the low of 11.70. Sustain move above 12.5-13 could see volatility surging

 

3.       Considering onset of result season and geopolitical risk, Low risk Long Strangle is recommended

 

Reward / Target : Rs. 6000 (If market witnesses an either side move of more than 150-200 points with rise in volatility)

 

Risk / Stop Loss: Rs. 3000         

 

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.

 

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.


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