Derivative strategy on Reliance by Motilal Oswal Securities

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

 

OPTION STRATEGY: Reliance (Call Ladder Spread)

 

Buy 1300 CE  1 lot

Sell 1340 CE 1 lot

Sell 1400 CE 1 lot

 

Rationale:

1. Reliance has been consolidating in last few trading session.

2. Put built-up at 1240-1260 could provide immediate support while unwinding in 1260 CE could propel momentum above 1300.

3. Considering positive bias and to participate bullish momentum, Call Ladder Spread is recommended.

 

Target: 17,000 between 1340-1400

Stop Loss: Rs. 2,100 below 1,300

Hedge: Buy future above 1,420

 

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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