Strategy:
BANK NIFTY : BULL CALL SPREAD
BUY 1 LOT OF 24300 CALL @ 181
SELL 1 LOT OF 24600 CALL @ 64
BEP :
Also Read
MAX RISK : 117 POINTS, Rs. 4680
MAX REWARD : 182 POINTS, Rs. 7320
Rationale:
1. It has managed to hold above 24000 zones even after the selling pressure in last two week
2. It has respected to its 50 DEMA and surpassed its falling supply trend line
3. Intact Put open interest at 24000 and fresh Put writing at higher strikes suggests an up move
4. Call writing at 24500 could restrict its upside towards 24500-24600
5. Thus a low risk, Bull Call Spread is recommended
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.
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