Strategy: Ratio Bear PUT Spread.
a) Buy 1 lot of 8600 PUT of Nifty of JUL Expiry for around Rs. 65.
b) Sell 2 lot of 8300 PUT of Nifty of JUL Expiry for around Rs. 11.
Profit Target: Rs. 3.000 Stop Loss: Rs. 1,075 (Both in absolute term.)
Reason: Currently Nifty is looking in overbought zone .So we would recommend a contra call on NIFTY through a Ratio Bear PUT Spread strategy on the nifty.The upside risk with this strategy is maximum of Rs 1075 and downside risk is unlimited. If at the last day of expiry, Nifty closes between 8557 and 8290 then this strategy will make the profit.
Advisory: Please Trade at your own risk because derivative investment involves a great amount of risk.