F&O Strategy: Nandish Shah recommends Bear Spread strategy on DLF

By On Jun 17, 2022

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The technical analyst from HDFC Securities recommends buying DLF June 300 Put and simultaneously selling 280 Put.

Topics

Derivatives strategy | F&O Strategies | DLF

Nandish Shah |
Mumbai

Last Updated at June 17, 2022 07:42 IST

Bear Spread strategy on DLF

Buy DLF (30-June Expiry) 300 PUT at Rs 9.7 & simultaneously sell 280 PUT at Rs 3.70

Lot Size 1650

Cost of the strategy Rs 6 (Rs 9,900 per strategy)

Maximum profit Rs 23,100 if DLF closes at or below 280 on 30 June expiry

Breakeven Point Rs 294

Rationales:

We have seen short buildup in the DLF futures where we have seen 4% addition (Prov) with DLF falling by 4%.

Short term trend of the DLF is negative as it is trading below its 5 and 20 day EMA.

Stock price has closed below its multiple support range of 306-315 levels

Momentum Indicators and Oscillators like RSI and MFI is sloping downwards and placed below 40 on the weekly chart, Indicating strength in the current downtrend.

Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock. Views are personal.

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First Published: Fri, June 17 2022. 07:42 IST

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