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.
Also Read
>> 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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