 "Stock Market: Sahaj Agrawal of Kotak Sec suggests Nifty Bull Call Spread")
Strategy Details:
Strategy: Nifty Bull Call Spread
Expiry: 6MAR2025
Strikes: Buy 22600CE and Sell 23000CE
Net Outflow: 170
Stop Loss: 85
Strategy Target: 350
Rationale:
>> The recent sharp sell-off has pushed the stock market into oversold territory as indicated by the technical Oscillators, creating a potential reversal opportunity.
>> 22,500 is a critical technical support level for Nifty price, reinforced by options data, where a significant concentration of Open Interest (OI) is observed at the 22,500 Strike Call, suggesting a possible temporary halt to the downtrend.
>> This level is expected to provide a base, making it an ideal entry point for bullish positions.
>> Given the prevailing stock market volatility, a Bull Call Spread is a prudent choice—allowing participation in the upside while maintaining a well-defined risk-reward structure.
=============================
Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%