Suggested Strategy:
- Strategy: Nifty Bull Call Spread
- Expiry: 9 APR 2025
- Strikes: Buy 22500CE and Sell 22800CE
- Net Outflow: 90
- Stop Loss: 45
- Strategy Target: 250
- Nifty staged a sharp rebound post Monday’s gap-down, with the multi-support zone at 21,800–21,700 (Mar–May 2024 lows) holding steady.
- The open nearly coincided with the day’s low at 21,743, while the close near the upper end of the daily candle adds significance.
- Micro-structure charts indicate a potential Double Bottom, with 21,800 tested twice intraday, separated by a valley peak at 22,190.
- Sustaining above 22,200 could fuel a short-covering rally towards the gap zone near 22,800.
- With volatility spiking, a Bull Call Spread is recommended to capture the anticipated recovery while maintaining a defined risk-reward framework.
(Disclaimer: Sahaj Agrawal is a senior vice president and head of derivatives research at Kotak Securities.)

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