HDFC Securities' Deputy Vice President Nandish Shah recommends a bear put spread on the Nifty for September 8, 2026 expiry, citing signs of weakening momentum and a bearish short-term setup. The strategy involves buying the Nifty September 8, 2026 expiry 24,000 Put at ₹85 and simultaneously selling the 23,800 Put at ₹43 with a lot size of 65. According to Shah's analysis, the maximum profit is ₹10,270 if the Nifty closes at or below 23,800 on expiry, while the maximum loss is ₹2,730 if it closes at or above 24,000. The breakeven point is set at 23,858, with an approximate margin requirement of ₹31,000 and a risk-reward ratio of 1:3.76.
The 30-share BSE Sensex dropped 539.35 points, or 0.70 per cent, to settle at 76,933.59 on Thursday, marking the second consecutive day of decline. According to Vinod Nair, Head of Research at Geojit, the decline was attributed to expiry-led volatility and lack of a diplomatic breakthrough in the Middle East. The NSE Nifty declined 116.90 points, or 0.48 per cent, to end at 24,090.85 during the session. Shah noted that a short build-up has emerged in Nifty futures, with open interest rising even as the index declined 0.5 per cent. He also pointed to the Nifty closing below its downward-sloping trendline on the daily chart. The short-term trend remains weak, with the index trading below its five-day and 11-day EMAs, while aggressive call writing is visible at the 24,100–24,200 levels. HDFC Securities advises booking profits when the strategy's return on investment exceeds 20 per cent.
For Bandhan Bank, Shah recommends a bear put spread for the September 29, 2026 expiry, citing weakness in the stock's technical setup. The strategy involves buying the 170 Put at ₹5.24 and simultaneously selling the 165 Put at ₹3.19 with a lot size of 3,600. According to Shah's analysis, the maximum profit is ₹10,620 if Bandhan Bank closes at or below ₹165 on expiry, while the maximum loss is ₹7,380 if it closes at or above ₹170. The breakeven point is set at ₹167.95, with an approximate margin requirement of ₹1.13 lakh and a risk-reward ratio of 1:1.44.
According to Shah's assessment, a short build-up was seen in Bandhan Bank futures, with open interest rising alongside a 2.5 per cent decline in the stock price. The stock is also close to breaking below its upward-sloping trendline. Its primary trend remains weak as the stock trades below its 200-day EMA, while the short-term setup remains weak based on its moving-average structure. Investors are advised to consider booking profits once the strategy's ROI exceeds 20 per cent.
