F&O strategy: Nandish Shah recommends the Bear Spread strategy on DLF
HDFC Securities technical analyst recommends to buy DLF June 300 Put and simultaneously sell 280 Put.
Derivatives Strategy | F&O Strategies | LDF
Nandish Shah |
Last Updated Jun 17, 2022 07:42 IST
Bear Spread Strategy on DLF
Buy DLF (expires June 30) 300 PUT at Rs 9.7 and simultaneously sell 280 PUT at Rs 3.70
Lot size 1650
Strategy cost Rs 6 (Rs 9,900 per strategy)
Maximum profit Rs 23,100 if DLF closes at or below 280 at June 30 expiry
Breakeven point Rs 294
- We saw a short build in DLF futures where we saw a 4% add (Prov) with a 4% DLF drop.
- The DLF’s short-term trend is negative as it is trading below its 5- and 20-day EMA.
- The stock price closed below its multiple support range of 306-315 levels
- Momentum indicators and oscillators like RSI and MFI are trending lower and placed below 40 on the weekly chart, indicating the strength of the current downtrend.
Disclaimer: Nandish Shah is a Technical Research Analyst at HDFC Securities. He holds no position in the stock. Views are personal.
First published: Fri 17 Jun 2022. 07:42 IST