According to Nandish Shah, senior technical/derivative analyst at HDFC Securities, the firm has recommended bull spread strategies on MidCap Nifty and Bajaj Finance based on favorable chart patterns and technical indicators. The recommendations come as both instruments have demonstrated long build-up phases with positive momentum signals.
The recommended bull spread involves buying 14,900 CALL at ₹107 and selling 15,000 CALL at ₹71 with a lot size of 120. As reported by HDFC Securities, the maximum profit of ₹7,680 can be achieved if MidCap Nifty closes at or above 15,000 on 28-July expiry, while maximum loss is capped at ₹4,320 if it closes at or below 14,900. The breakeven point is set at ₹14,936 with a risk reward ratio of 1:1.78 and approximate margin requirement of ₹35,000.
The second recommendation involves buying 1050 CALL at ₹13.8 and selling 1080 CALL at ₹5.25 with a lot size of 750. According to HDFC Securities, the maximum profit of ₹16,088 can be realized if Bajaj Finance closes at or above 1080 on 28-July expiry, while maximum loss is limited to ₹6,412 if it closes at or below 1050. The breakeven point is positioned at ₹1,058.55 with a risk reward ratio of 1:2.51 and approximate margin requirement of ₹27,000.
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 28 July 2026, expecting a moderately bullish view. The recommended strategy involves buying 1 lot of Nifty 24,250 Call at ₹170-₹190 and selling 1 lot of Nifty 24,500 Call at ₹75-₹95 with a break even point at 24,349. According to Axis Securities, the maximum potential risk is ₹6,435 while the potential maximum reward is ₹9,815. The premium for At-the-Money option is ₹363, indicating a likely trading range between 23,800 and 24,650 for the week.
The latest market data shows BSE Sensex declined 283.28 points (0.36%) to 77,425.24 and NSE Nifty 50 was down 76.15 points (0.31%) at 24,162.35 as of Tuesday trading. As per Livemint, the decline was weighed down by selling in IT and banking stocks amid weak global market cues. However, broader markets outperformed with Nifty Smallcap 100 gaining 0.55% and Nifty Midcap 100 up 0.24%. Among sectors, Nifty IT, FMCG, PSU Bank and Oil & Gas faced selling pressure, while Metal, Pharma, Realty and Auto indices gained. Top losers included HDFC Bank, Infosys, Reliance Industries, Bajaj Auto and TCS, while Shriram Finance, Bajaj Finserv, InterGlobe Aviation, UltraTech Cement and HCL Technologies were top gainers.
