Nifty 50 Trading Strategy: Analysts recommend Bull Call Spread options strategy for 21 August expiry
Wipro, Infosys, HDFC Life Insurance Company, Eternal and Bharti Airtel were among the top gainers in the Nifty 50 constituents, while Tata Steel, Adani Ports & SEZ, Bharat Electronics, Hindalco Industries and Ultratech Cement were the top index losers.
In the previous session, the domestic benchmark indices ended with decent gains. The Sensex gained 304.32 points, or 0.38%, to close at 80,539.91, while the Nifty 50 settled 131.95 points, or 0.54%, higher at 24,619.35 on Wednesday.
The highest Nifty Open Interest (OI) on the Call side is at the 24,700 strike, followed by 24,600 which could act as resistance levels. On the Put side, the highest Open Interest is at 24,500, followed by 24,400 which may serve as support levels, Axis Securities said in a note.
The premium for the At-the-Money option is ₹ 301, indicating a likely trading range for the week between 24,300 and 25,000, it added.
Axis Securities has suggested a Bull Call Spread strategy for Nifty options contracts expiring on 21 August 2025, forecasting a moderately bullish view.
A bull call spread strategy involves buying a call option with a strike price slightly lower than current market price of the underlying asset, which is Nifty 50, and simultaneously selling another call option with a higher strike price (out-of-the-money), both with the same expiration date. This strategy is applied when the outlook is moderately bullish.
Buy 1 lot of Nifty 24,650 Call at ₹ 155 - ₹ 165
Sell 1 lot of Nifty 24,850 Call at ₹ 75 - ₹ 85
The strategy involves buying one lot of the 24,650 strike Call Option and simultaneously selling one lot of the 24,850 strike Call Option.
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹ 6,000, whereas the potential maximum reward is ₹ 9,000.
'Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward,' said the brokerage firm.
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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