Friday, December 05, 2025 | 11:07 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

How to trade amid volatility? Here's one strategy to capture any recovery

Nifty staged a sharp rebound post Monday's gap-down, with the multi-support zone at 21,800-21,700

trading, stock market

trading, stock market

Sahaj Agrawal Mumbai

Listen to This Article

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
   Rationale: 
  • 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.
 ALSO READ: US tariffs spook markets: Sensex, Nifty 50 see sharpest fall in 10 months 
(Disclaimer: Sahaj Agrawal is a senior vice president and head of derivatives research at Kotak Securities.)
 
   

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 08 2025 | 7:29 AM IST

Explore News