Here's your Bank Nifty trading guide by Kotak Securities' Sahaj Agrawal
A Bull Call Spread is recommended to capture the anticipated rally while maintaining a defined risk-reward framework, says Sahaj Agrawal
 "Here's your Bank Nifty trading guide by Kotak Securities' Sahaj Agrawal")
Suggested Strategy:
- Strategy: Bank Nifty Bull Call Spread
- Expiry: May 29, 2025
- Strikes: Buy 55,500 CE and Sell 56,500 CE
- Net outflow: 350
- Stop loss: 100
- Strategy target: 800
Rationale:
- Strong activity on Thursday, is a testimony of the strong sentimental undertone. Bank Nifty, which has been laggard so far, is now showing signs of strength.
- A breakout from the congestion in the form of a “Bullish Flag” is observed above 55,300 levels. Though the setup has the potential to propel Bank Nifty to much higher levels, a quick move up to 56,500 is expected over the next few days on an immediate basis.
- With volatility remaining on the higher side, a Bull Call Spread is recommended to capture the anticipated rally while maintaining a defined risk-reward framework.
(This article is by Sahaj Agrawal, senior vice president, head of derivatives Research, Kotak Securities. Views expressed are his own.)