According to HDFC Securities, a bear spread strategy has been recommended on MIDCP NIFTY for the September 29 expiry. The strategy involves buying 14900 PUT at ₹217 and simultaneously selling 14800 PUT at ₹173 with a lot size of 120. The maximum profit is set at ₹6,720 if MIDCP NIFTY closes at or below 14800 on September 29 expiry, while the maximum loss stands at ₹5,280 if it closes at or above 14900. The breakeven point is positioned at ₹14,856 with a risk-reward ratio of 1:1.27 and an approximate margin requirement of ₹36,000.
As reported by HDFC Securities, a bull spread strategy has been suggested on Canara Bank for the September 29 expiry. The strategy involves buying 132.5 CALL at ₹3.19 and selling 135 CALL at ₹2.40 with a lot size of 6,750. The maximum profit is set at ₹11,542 if Canara Bank closes at or above 135 on September 29 expiry, while the maximum loss stands at ₹5,332 if it closes at or below 132.5. The breakeven point is positioned at ₹133.29 with a risk-reward ratio of 1:2.16 and an approximate margin requirement of ₹61,000.
According to HDFC Securities' technical analysis, the bear spread strategy on MIDCP NIFTY is based on short build-up seen in futures at higher levels with rising open interest and price correction from morning highs. The short-term trend remains weak as MIDCP NIFTY is positioned below its 5 and 11-day EMAs, with aggressive call writing observed at 15000 levels. For the bull spread on Canara Bank, the analysis notes long build-up with rising open interest alongside a 0.7% price increase, with the stock consolidating after breaking out on the weekly chart for the week ended August 7. The stock maintains a positive short-term trend as it trades above its 5 and 10-week EMAs.
