F&O Strategy today: Deploy Nifty Ratio Spread amid rise in volatility due to global cues

The Nifty50 suffered a fall of more than 1 percent on Monday to close just a shade below 17,400.

Vishal Wagh, Research Head, Bonanza Portfolio recommends Nifty Ratio Spread (credit):

See Zee Business Live TV Streaming Below:

BUY 3 lots of 17450 CE CMP 80 and Selling 1 lot of 17000 CE@401 (23rd Sep 2021)

The credit of Rs. 7975 and Margin Required 18100

Rationale –

In the last couple of days, Nifty has shown a sharp sell-off from the high of 17792.95. In this week, there is multiple news expected in front of FED and Property bust in China. So, the market is bound to be volatile.

Though technically speaking reversal will be confirmed only on closing below Swing low of 17267. In the near future, a strong bullish grip has been witnessed by the market strong bullish move can be seen.

At the same time, in case of bearish confirmation below 17265 one should get protection in long too.

Expected momentum can be above 3% in either direction.

Following three possible expiry:

1. In between 17160-17595 –  loss of, Rs. 0 - 14000 net outflow.

2. Break Out again in the direction of bulls above 17600 profit are unlimited

3. Break down below 17160 max profit possible is Rs. 7975/

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)