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Here's a derivative strategy on RBL Bank by Nandish Shah of HDFC Securities

Stock price has broken down on the daily chart where it closed below the multiple support of 163 levels
Buy RBL Bank Oct 150 Put at Rs 9

Lot Size: 2600

 
Stop Loss: Rs 7

 
Target: Rs 14
         
Rationale:
  • Short build up is seen in the RBL Bank Futures’ where we have seen 2%(Prov) rise in the Open Interest with Price falling by 5%

     
  • Stock price has broken down on the daily chart where it closed below the multiple support of 163 levels

     
  • Primary trend of the stock is negative where stock price is trading below its important moving averages.

     
  • -DI is trading below +DI while ADX is placed above 25, indicating weakness in the uptrend.





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