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Looking to ride the uptrend? Here's a strategy to generate alpha

Recommended Strategy: • Strategy: Nifty bull call spread• Expiry: May 8, 2025• Strike prices: Buy 25,000 call @153 and sell 25,300 call @63• Net premium outflow: 90 points• Stop loss: 45• Target: 180 points ALSO READ: Asian markets rally as US-China trade truce lifts investor sentiment Rationale:• On Monday, Nifty opened gap up and decisively crossed the resistance zone near 24,590, supported by positive geopolitical developments that boosted overall sentiment.• The Put-Call Ratio (PCR) improved significantly from 0.725 to 1.183, reflecting aggressive put writing and comparatively lower call writing, a sign of strengthening bullish sentiment.• A bull call spread allows participation in the ongoing uptrend with a defined risk-reward profile, especially as the index approaches the psychological 25,000 mark.• This strategy is ideal when expecting a moderate rise, as it reduces premium outflow compared to buying a naked call. ALSO READ: Nifty can zoom 900 pts form here to hit 25,800; details here (This article is by Sahaj Agrawal, senior vice president, head of derivatives Research, Kotak Securities. Views expressed are his own.)