 "NSE, BSE, STOCK MARKETS, TRADING")
Suggested Strategy:
- Strategy: Bank Nifty Bull Call Spread
- Expiry: May 29, 2025
- Strikes: Buy 55,500 CE and Sell 56,500 CE
- Net outflow: 350
- Stop loss: 100
- Strategy target: 800
Rationale:
- Strong activity on Thursday, is a testimony of the strong sentimental undertone. Bank Nifty, which has been laggard so far, is now showing signs of strength.
- A breakout from the congestion in the form of a “Bullish Flag” is observed above 55,300 levels. Though the setup has the potential to propel Bank Nifty to much higher levels, a quick move up to 56,500 is expected over the next few days on an immediate basis.
- With volatility remaining on the higher side, a Bull Call Spread is recommended to capture the anticipated rally while maintaining a defined risk-reward framework.
(This article is by Sahaj Agrawal, senior vice president, head of derivatives Research, Kotak Securities. Views expressed are his own.)
 "market, stocks, stock market trading, stock market")
 "reit")
 "ASK Investment Managers")
 "Shree Cement")
 "Eicher Motors, Royal Enfield")
