F&O strategies for L&T, Nifty: Shubham Agarwal

L&T

Strategy: LT Call Ratio Spread

BUY 1600 CE 1 LOT

SELL 1700 CE 2 LOTS

Target Profit: Rs 3500

Stop Loss: Rs 1500

Rationale:

After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.   

 

NIFTY

Strategy: Nifty Call Ratio Spread

Buy 8150 CE

Sell 2 Lots 8350 CE

Target Profit: Rs 2500

Stop Loss: Rs 1000

 

Rationale:

Despite the move upwards Longs have been missing, some glimpse of it was seen on Monday. Head room remains open up to 8300-8400 (Call Congestion). Considering the move already in place and lack of lot of longs, Call Ratio spread cane be considered

 

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.

Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities


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