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Stock Market: Sahaj Agrawal of Kotak Sec suggests Nifty Bull Call Spread

Nifty Today: 22,500 is a critical technical support level for Nifty share price

Nifty 50

Stock Market Today: Given the prevailing stock market volatility, a Bull Call Spread is a prudent choice for Nifty share price | Photo: Shutterstock

Sahaj Agrawal Mumbai

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Strategy Details:
 

Strategy: Nifty Bull Call Spread

Expiry: 6MAR2025

Strikes: Buy 22600CE and Sell 23000CE

Net Outflow: 170 

Stop Loss: 85

Strategy Target: 350 

 
Rationale:
 
>> The recent sharp sell-off has pushed the stock market into oversold territory as indicated by the technical Oscillators, creating a potential reversal opportunity.
 
>> 22,500 is a critical technical support level for Nifty price, reinforced by options data, where a significant concentration of Open Interest (OI) is observed at the 22,500 Strike Call, suggesting a possible temporary halt to the downtrend.
 
>> This level is expected to provide a base, making it an ideal entry point for bullish positions.
 
 
>> Given the prevailing stock market volatility, a Bull Call Spread is a prudent choice—allowing participation in the upside while maintaining a well-defined risk-reward structure.
     
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Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.

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First Published: Feb 25 2025 | 6:16 AM IST

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