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1. Quantitative Factor Analysis
NMDC Limited has achieved a score of 90.0 out of 100 based on a comprehensive Institutional Factor Model. This high score is attributed to its robust price structure, which reflects strong market sentiment and investor confidence. The stock has experienced a significant volume expansion of 6.3 times its average, indicating heightened interest and activity among institutional investors. Additionally, the volatility tightness of 11.4% suggests a stable price environment, further enhancing the attractiveness of NMDC as a potential investment.
2. Institutional Execution Strategy
The execution strategy employed for NMDC is a Dynamic Variance Hedging approach, which involves a multi-leg execution to manage risk effectively. The core position is established by buying NMDC equity, while a protective put option (NMDC26JUN91PE) is purchased to safeguard against downside risk. To finance this protective position, a call option (NMDC26JUN106CE) is sold, allowing the institution to offset some of the costs associated with the put option. This strategic combination enables the institution to maintain exposure to NMDC while mitigating potential losses.
3. Payout & Risk Matrix
The payout and risk matrix for this strategy is as follows: 🟢 Max Reward: +10.06% | 🔴 Max Risk: -5.52% | 📊 R:R Ratio: 1.8:1 | ⚖️ Breakeven: ₹96.31. This structured approach caps variance and clearly defines the risk exposure, allowing for a calculated investment strategy that aligns with institutional objectives.
Entry: ₹95.53 | Put Strike: 91.0 | Call Strike: 106.0
Net Premium: ₹0.64 (+debit) | Est. Cost Basis: ₹96.31
Breakeven: ₹96.31 (+0.82% from entry)
Max Risk: -5.52% | Max Reward: +10.06% | R:R: 1.8:1
| Stock Move | Stock @ Expiry | Stock P&L | Option P&L | Net P&L | Net P&L % |
|---|---|---|---|---|---|
| -15% | ₹81.20 | ₹-14.33 | ₹+9.16 | ₹-5.31 | -5.52% |
| -10% | ₹85.98 | ₹-9.55 | ₹+4.38 | ₹-5.31 | -5.52% |
| -5% | ₹90.75 | ₹-4.78 | ₹-0.39 | ₹-5.31 | -5.52% |
| +0% | ₹95.53 | ₹+0.00 | ₹-0.64 | ₹-0.78 | -0.81% |
| +5% | ₹100.31 | ₹+4.78 | ₹-0.64 | ₹+3.99 | +4.15% |
| +10% | ₹105.08 | ₹+9.55 | ₹-0.64 | ₹+8.77 | +9.11% |
| +15% | ₹109.86 | ₹+14.33 | ₹-4.50 | ₹+9.69 | +10.06% |
4. Institutional Market Breadth
The following equities also exhibited high-probability quantitative factors during today's scan:
| Symbol | Factor Score |
|---|---|
| NMDC | 90.0/100 |
| TECHM | 70.0/100 |
This report is a quantitative factor analysis generated by FindNex's AI Engine. It identifies mathematical probabilities based on historical volatility and momentum factors. It is NOT a buy/sell recommendation. Trading involves substantial financial risk.
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