1 min read Last Updated : May 27 2025 | 7:51 AM IST
Recommended Strategy
Strategy: Nifty Bull Call Spread
Expiry: 29 MAY 2025
Strikes: Buy 25,200CE and Sell 25,500CE
Net Outflow: ~85
Stop Loss: 30
Strategy Target: 200
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Rationale:
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Nifty has resumed its upward trend while it made a putative swing low on last Thursday at 24,462.
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The re-ignition of the momentum in the broader markets, especially seen in the last couple of days, is inkling a potential to propel Nifty towards 25,500 levels.
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However, given the prevailing volatility, a risk-limited Bull Call Spread is an optimal strategy.
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It offers a favourable reward-to-risk ratio, aligning with expectations of a moderate upward move over the next few days.
(Disclaimer: This article is by Sahaj Agrawal, senior vice president, head of derivatives research, Kotak Securities. Views expressed are his own.) First Published: May 27 2025 | 7:44 AM IST
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