The Indian stock market traded higher on Tuesday, led by gains in IT stocks amid mixed global market cues. A fall in crude oil prices on hopes of a US-Iran ceasefire deal supported the bullish momentum in the equity market.
The Sensex traded 272.51 points, or 0.36%, higher at 75,587.55, while the Nifty 50 was up 74.35 points, or 0.31%, at 23,724.25. The Bank Nifty index rose 47.05 points, or 0.09%, to 53,575.90.
Infosys, Tech Mahindra, Tata Motors Passenger Vehicles, HCL Technologies and Eternal were the top gainers on the Nifty 50 index, while Kotak Mahindra Bank, Bharti Airtel, UltraTech Cement, Coal India and Tata Consumer Products were the top index losers.
On Monday, the Sensex ended 77.05 points, or 0.10%, higher at 75,315.04, while the Nifty 50 settled 6.45 points, or 0.03%, higher at 23,649.95.
Nifty Options Highlights
In the options segment, the highest Open Interest (OI) on the Call side is at the 24,000 strike, followed by 23,800 which could act as resistance levels. On the Put side, the highest Open Interest is at 23,400 followed by 23,300 which may serve as support levels, Axis Securities said.
The premium for the At-the-Money option is ₹549, indicating a likely trading range for the week between 23,100 and 24,200, it added.
Nifty Options Strategy for 26 May 2026 Expiry
Recommended Strategy: Bull Call Spread
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 26 May 2026, expecting 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, and 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.
Strategy Details
Buy 1 lot of Nifty 23,750 Call at ₹200 – ₹230
Sell 1 lot of Nifty 24,000 Call at ₹110 – ₹130
The strategy involves buying one lot of the 23,750 strike Call Option and simultaneously selling one lot of the 24,000 strike Call Option.
Risk-Reward Analysis
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹5,785, whereas the potential maximum reward is ₹10,465.
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.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Source link
Leave A Comment