F&O strategies for Bharti Airtel, SBI: Shubham Agarwal

Bharti Airtel

Strategy : Bear Spread

Buy Oct 340 PE

Sell Oct 320 PE

 

Target Profit: Rs 5000

Stop Loss: Rs 2500

 

Rationale:

The stock is in short - short unwinding structure which builds expectation of a down move. Bharti has started trading below the consensus floor around 350, opening up room on the downside. The view can be traded with a Bear Spread of next month expiry.

 

SBI

Strategy : Long Put

Buy OCT 240PE

 

Target Profit : Rs 18

Stop Loss : Rs 8

 

Rationale:

The stock has seen reaction from congested Call strike (expected upper bound). SBI has also added shorts in Tuesday’s trade. The move an extend in the near term and the same can be traded with a Long Put.

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 and its associates have a financial interest in the securities mentioned above however they do not have actual/ beneficial ownership of 1% or more securities of the subjecct company at the end of Jan 2015. The spokesperson or his relatives, do not have a financial interest.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

 

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