Date: 04/12/2014 Share Name: Nifty CMP: 8324
Strategy: Ratio Bull Call Spread.
a) Buy 1 lot of 8300 Call of Nifty of Nov Expiry for around Rs. 133.
b) Sell 2 lot of 8500 Call of Nifty of Nov Expiry for around Rs. 41.
Profit Target: Rs. 3.000 Stop Loss: Rs. 1,275 (Both in absolute term.)
Reason: Currently Nifty is looking in very strong momentum at upside and also trading above 50 DMA and 15 DMA including all the major moving averages .So we would recommend a Ratio Bull Call Spread strategy on nifty.The downside risk with this strategy is maximum of Rs 1275 and upside risk is unlimited. If at the last day of expiry, Nifty closes between 8351 and 8600 then this strategy will make the profit.
Advisory: Please Trade at your own risk because derivative investment involves a great amount of risk.
Strategy: Ratio Bull Call Spread.
a) Buy 1 lot of 8300 Call of Nifty of Nov Expiry for around Rs. 133.
b) Sell 2 lot of 8500 Call of Nifty of Nov Expiry for around Rs. 41.
Profit Target: Rs. 3.000 Stop Loss: Rs. 1,275 (Both in absolute term.)
Reason: Currently Nifty is looking in very strong momentum at upside and also trading above 50 DMA and 15 DMA including all the major moving averages .So we would recommend a Ratio Bull Call Spread strategy on nifty.The downside risk with this strategy is maximum of Rs 1275 and upside risk is unlimited. If at the last day of expiry, Nifty closes between 8351 and 8600 then this strategy will make the profit.
Advisory: Please Trade at your own risk because derivative investment involves a great amount of risk.