Nifty 50 Trading Strategy: Analysts recommend Bear Put Spread options strategy for 7 August expiry
Hindustan Unilever, Jio Financial Services, JSW Steel, Eternal and PowerGrid Corporation of India were the top gainers among the Nifty 50 constituents, leading the rebound in the market.
The Indian equity market ended higher in the previous session, with the Nifty 50 closing above 24,800 level. The Sensex rallied 143.91 points, or 0.18%, to close at 81,481.86, while the Nifty 50 settled 33.95 points, or 0.14%, higher at 24,855.05.
The highest Nifty Open Interest (OI) on the Call side is at the 25,000 strike, followed by 24,900 which could act as resistance levels. On the Put side, the highest Open Interest is at 24,800, followed by 24,700 which may serve as support levels, according to Axis Securities.
The premium for the At-the-Money option is ₹ 306, indicating a likely trading range for the week between 24,400 and 25,300, it added.
Axis Securities has suggested a Bear Put Spread strategy for Nifty options contracts expiring on 7 August 2025, forecasting a moderately bearish view.
A bear put spread options strategy involves buying a put option and selling another put option with a lower strike price and the same expiration date of the same underlying asset, which is Nifty 50 here. This strategy is used when the view is bearish.
Buy 1 lot Nifty 24,800 Put at ₹ 105 - 110
Sell 1 lot Nifty 24,550 Put at ₹ 45 - 55
The strategy involves buying one lot of the 24,800 strike Put Option and simultaneously selling one lot of the 24,550 strike Put Option.
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹ 4,200, whereas the potential maximum reward is ₹ 14,550.
'Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward,' the brokerage firm said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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