Sahaj Agrawal of Kotak Securities suggest Bull Call Spread on Nifty50
Consolidation Phase: After rebounding from recent lows, Nifty has been consolidating this week, preparing for the next leg up.
 "Sahaj Agrawal of Kotak Securities suggest Bull Call Spread on Nifty50")
Recommended Strategy:
Strategy: Nifty Bull Call Spread
Expiry: 20 March 2025
Strike Prices: Buy 22400CE & Sell 22650CE
Net Premium Outflow: ~98
Stop Loss: 50
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Target: 200
Rationale:
- Consolidation Phase: After rebounding from recent lows, Nifty has been consolidating this week, preparing for the next leg up.
- Key Levels: Nifty bottomed at 21,964.60 (4th March) and has retraced to 22,676, aligning with the 38.2% Fibonacci retracement of the 23,807 – 21,964 decline, making 22,670 a key resistance.
- Market Sentiment: Midcaps, which were deeply oversold, have begun recovering, improving overall sentiment.
- Outlook: Support at 22,300 minimizes the chances of a sustained decline. A move above 22,550 is expected to push Nifty towards 22,650 – 22,700 in the coming week. (Disclaimer: Sahaj Agrawal, Senior Vice President, Head of Derivatives Research, Kotak Securities. Views expressed are his own.)