Nifty 50 Trading Strategy: Analysts suggest Bear Put Spread options strategy for 26 June expiry

Mint

7 hours ago

The Indian stock market traded higher after opening flat on Friday amid mixed global cues, with the benchmark indices, Sensex and Nifty 50, gaining nearly half a percent each. The Nifty 50 index rose close to 24,900 level, recovering from the previous session's loss.
Mahindra & Mahindra (M&M), HDFC Life Insurance Company, Bharti Airtel, Jio Financial Services, Trend and Shriram Finance were among the top gainers in the Nifty 50 index.
In Thursday's session, the Nifty 50 declined 18.80 points, or 0.08%, to close at 24,793.25. The formed a doji candle and continues to stay sideways in the range of 24,500 and 25,200 levels.
In the options market, the highest Open Interest (OI) on the Call side is at the 25,000 strike, followed by 24,900 and 25,100, which could act as resistance levels, according to Axis Securities. On the Put side, the highest Open Interest is at 24,800, followed by 24,700 and 24,500, which may serve as support levels.
The premium for the At-the-Money option is ₹ 412, indicating a likely trading range for the week between 24,300 and 25,200, Axis Securities said.
Axis Securities has suggested a Bear Put Spread strategy for Nifty options contracts expiring on 26 June 2025, reflecting a moderately bearish outlook.
A Bear Put Spread involves buying a Put option with higher strike and simultaneously selling a Put option with lower strike to offset part of the upfront cost. This strategy is characterized by limited risk and limited profit potential, making it suitable for traders anticipating a moderate decline in the underlying Nifty 50 index.
Buy Nifty 24,800 Put @ ₹ 190 - 200
Sell Nifty 24,550 Put @ ₹ 110 - 120
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.
According to analysts at Axis Securities, the potential maximum risk for this strategy is ₹ 6,000, whereas the potential maximum reward is ₹ 12,750.
'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.