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F&O strategy: Nandish Shah recommends Bull Spread on Nifty, Shriram Finance

Here's why Nandish Shah technical research analyst of HDFC Securities recommends a 'Bull Spread' strategy on Nifty and Shriram Finance.

F&O strategy by HDFC Securities: Bull Spread recommended on Nifty and Shriram Finance. (Photo: Shutterstock)

Nandish Shah Mumbai

2 min read Last Updated : Jul 03 2026 | 7:16 AM IST

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Derivative strategy by Nandish Shah of HDFC Securities

BULL SPREAD STRATEGY ON NIFTY

Buy NIFTY (14-July Expiry) 24200 CALL at Rs 197 & simultaneously sell 24500 CALL at Rs 73 Lot Size 65 Maximum profit ₹11,440; if NIFTY closes at or above 24500 on 14 July expiry. Maximum Loss ₹8,060; if NIFTY closes at or below 24200 on 14 July expiry. Breakeven Point 24324 Risk Reward Ratio 1: 1.42 Approx margin required ₹31,500

Rationale:

Short covering is seen in the NIFTY Futures, where we have seen fall in Open interest along with price rise.
Short term trend remains strong as NIFTY is placed above its 5 and 20 day EMA.
Amongst the options, aggressive put writing is seen at 24000-24200 levels.
RSI Oscillator is in rising mode and placed above 60 on the daily chart.

BULL SPREAD strategy on SHRIRAM FINANCE

Buy Shriram Finance (28-July Expiry) 1080 CALL at ₹26.1 & simultaneously sell 1100 CALL at ₹18.6 Lot Size 825 Maximum profit ₹10,313; if Shriram Finance closes at or above ₹1,100 on 28 July expiry. Maximum Loss ₹6,187; if Shriram Finance closes at or below ₹1,080 on 28 July Expiry. Breakeven Point ₹1,087.5 Risk Reward Ratio 1: 1.67 Approx margin required ₹31,000 Rationale:

Long build up is seen in the Shriram Finance Futures during the week where we have seen rise in OI with price rising by 2 per cent.
Short term trend of the Shriram Finance stock is positive as it is placed above its 5 and 11 day EMA
Stock price has broken out from the downward sloping trendline.
Oscillators like RSI and MFI are in rising mode and placed above 60 on the daily chart, suggesting strength in current uptrend.

Note : It is advisable to book profit in the strategy when ROI exceeds 20 per cent. (Disclaimer: Nandish Shah is a senior technical/derivative analyst at HDFC Securities. Views expressed are his own.)