Nandish Shah recommends this F&O strategy in Bank Nifty for 22-Dec expiry

The derivative analyst from HDFC Securities recommends to Buy Bank Nifty 43,500 Call and simultaneously Sell 44,000 Call for the weekly expiry ending on 22-December.

BULL SPREAD Strategy on BANK NIFTY

Buy Bank Nifty (22-Dec Expiry) 43,500 CALL at Rs 525 & simultaneously sell 44,000 CALL at Rs 284

Lot Size 25

Cost of the strategy Rs 241 (Rs 6025 per strategy)

Maximum profit Rs 6,475; If Bank Nifty closes at or above 44,000 on 22-Dec expiry.

Breakeven Point Rs 43,741

Approx margin required Rs 22,000

Rationale:

We have seen long build up in the Bank Nifty futures on Thursday, where we have seen 14 per cent addition (Prov) in Open Interest with price rising by 1 per cent.

It has broken out from the narrow consolidation which held for previous 10 trading sessions.

Momentum