Nandish Shah of HDFC Securities has recommended a Bear spread on Bank Nifty with specific parameters for September 29 expiry. The strategy involves buying Bank Nifty 55,500 Put at ₹347 and simultaneously selling 55,000 Put at ₹175 with a lot size of 30. According to Shah's analysis, the maximum profit of ₹9,840 can be achieved if Bank Nifty closes at or below 55,000 on September 29 expiry, while maximum loss is capped at ₹5,160 if it closes at or above 55,500. The breakeven point is set at ₹55,328 with a risk reward ratio of 1:1.91 and approximate margin requirement of ₹30,000.
For Canara Bank, Shah recommends a Bull spread with October 27 expiry parameters. The strategy involves buying Canara Bank 130 Call at ₹2.26 and selling 135 Call at ₹1.04 with a lot size of 6,750. The maximum profit potential of ₹25,515 can be realized if Canara Bank closes at or above ₹135 on October 27 expiry, while maximum loss is limited to ₹8,235 if it closes at or below ₹130. The breakeven point is positioned at ₹131.22 with a risk reward ratio of 1:3.1 and approximate margin requirement of ₹1,57,000.
According to Shah's technical analysis, short build-up is seen in Bank Nifty Futures with rising open interest despite a 2% price decline. Bank Nifty has broken down on the daily chart, closing at its lowest level since June 11, 2026. The short-term trend has turned weak as Bank Nifty closed below its 5 and 11 day EMA. For Canara Bank, long build-up was observed in futures with 1.5% price rise from intraday low and positive short-term trend with stock positioned above its 5 and 11 day EMA. The stock has formed a double bottom around ₹121 levels with momentum indicators and oscillators in rising mode above 50 on the daily chart.
Shah advises that it is advisable to book profit in both strategies when ROI exceeds 20%. The Bank Nifty strategy targets aggressive call writing at 55,500-56,000 levels, while the Canara Bank strategy benefits from the stock's positive momentum indicators and technical formation. Both recommendations are based on specific expiry dates and technical analysis of the respective instruments' price action and chart patterns.
