Nandish Shah of HDFC Securities has recommended a Bull Spread strategy on Bank Nifty using the 30-June expiry with specific call options. According to the analysis, traders should buy BANK NIFTY 55,500 CALL at ₹825 and sell 56,000 CALL at ₹610 with a lot size of 30. The strategy offers a maximum profit of ₹8,550 if Bank Nifty closes at or above 56,000 on expiry, while the maximum loss is ₹6,450 if it closes at or below 55,500. The breakeven point is ₹55,715 with a risk reward ratio of 1:1.33 and an approximate margin requirement of ₹33,000.
HDFC Securities has also suggested a Bull Spread strategy on Torrent Pharma using the 30-June expiry with specific call options. The recommended strategy involves buying 4600 CALL at ₹98 and selling 4700 CALL at ₹58 with a lot size of 125. This strategy offers a maximum profit of ₹7,500 if Torrent Pharma closes at or above 4700 on expiry, while the maximum loss is ₹5,000 if it closes at or below 4600. The breakeven point is ₹4,640 with a risk reward ratio of 1:1.5 and an approximate margin requirement of ₹20,000.
According to the HDFC Securities analysis, the long build-up is seen in Bank Nifty Futures with rising open interest alongside price increases. The short-term trend remains strong as Bank Nifty is positioned above its 5 and 20-day EMAs, while put writing is observed at 55,000-54,500 levels. For Torrent Pharma, the analysis notes long build-up in futures with rising open interest and a 3% price rise. The short-term trend is positive as the stock trades above its 5 and 11-day EMAs, with the stock forming a bullish higher top higher bottom formation on weekly and monthly charts. Additionally, RSI oscillator is in rising mode and placed above 60 on the daily chart for both stocks, suggesting strength in current uptrends. As per The Economic Times, Indian pharma stocks are outperforming the market, driven by robust domestic demand and positive global healthcare trends, with emerging opportunities from supply chain diversification away from China.
As reported by HDFC Securities, the analysis recommends booking profits when ROI exceeds 20% for both strategies. The firm advises that it is advisable to book profit in the strategy when ROI exceeds 20% for optimal risk management. The strategies are designed for 30-June expiry and target specific price levels based on technical analysis of both Bank Nifty and Torrent Pharma futures and options markets. According to The Economic Times, technical analysts suggest Nifty is in an indecisive range, awaiting a decisive breakout above 23,800 or a fall towards 23,600, with global factors like Iran-Israel tensions and US bond yields influencing sentiment.
