Nifty 50 Trading Strategy: A Bull Call Spread strategy is applied when the outlook is moderately bullishAI Quick ReadThe Indian stock market benchmark indices, Sensex and Nifty 50, are trading with strong gains on Tuesday, 21 April, led by buying across the board, ahead of the weekly F&O expiry today.
The Sensex was trading 635.21 points, or 0.81%, higher at 79,155.51, while the Nifty 50 was up 166.45 points, or 0.68%, at 24,531.30.
Trent, Bajaj Finance, ICICI Bank, Asian Paints and HCL Technologies were the top gainers on the Nifty 50 index, while SBI Life Insurance Company, Dr Reddy’s Laboratories, Jio Financial Services, Bharat Electronics (BEL) and Shriram Finance were the top index losers.
In the derivatives market, the highest Nifty Open Interest (OI) on the Call side is at the 24,500 strike, followed by 24,300 which could act as resistance levels. On the Put side, the highest OI is at 24,000 followed by 23,800 which may serve as support levels, said Axis Securities.
The premium for the At-the-Money option is ₹592, indicating a likely trading range for the week between 23,600 and 24,900, it added.
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 28 April 2026, forecasting a moderately bullish view.
A bull call spread strategy involves buying a call option with a strike price slightly lower than current market price of the underlying asset, which is Nifty 50. It also includes simultaneously selling another call option with a higher strike price (out-of-the-money), both with the same expiration date. This strategy is applied when the outlook is moderately bullish.
Buy 1 lot of Nifty 24,350 Call at ₹265 – ₹285
Sell 1 lot of Nifty 24,700 Call at ₹125 – ₹145
Break Even Point: 24,493
The strategy involves buying one lot of the 24,350 strike Call Option and simultaneously selling one lot of the 24,700 strike Call Option.
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹9,295, whereas the potential maximum reward is ₹13,455.
Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward, said the brokerage firm. It suggested to enter and exit all the legs in strategy together and square-off the strategy before the expiry session closes.
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