Pair trade strategy: Buy Indian Bank, Sell IndusInd Bank same value

We initiate a Pair trade with Long Indian Bank @ 233 and shortIndusInd Bank @ 337 futures for equal value. The current ratio is 0.6963 and we expect this ratio to improve to a minimum of 0.723 implying a yield of 3.8%. strategy is low risk and extremely short term. Stop loss ratio is 0.68.

Pair trade Buy Indian bank sell Indusind Bank

Pair trade strategy for Indian markets Buy Indian Bank and sell IndusInd Bank equal value

Disclaimer: The views expressed in this article are entirely my own and do not reflect the views of my employer. This report is neither an offer nor a solicitation to purchase or sell securities. The information and views expressed herein are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in or have positions in the securities mentioned in their articles. Neither or myself accepts any liability arising out of the above information/articles.

Vinit Bolinjkar Head of Research, Ventura Securities Ltd

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