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

  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.)