In the last half hour helped to buy support based on the index to reclaim part of its intraday decline.
“On the daily graph it formed an inner rod pattern and continues to act well above the advanced averages of the short term, which indicates a general positive undertone,” noted Chandan Taparia, main derivatives and technical management at Motilal Oswal.
“If it applies above 24,800 zones, the strength can be seen at 25,050 and then 25,200 zones, while supports are placed at 24,800 and then 24,650 zones,” he added.
In the field of options, maximum call OI is on the 25,000 and then 25,200 strikes, while maximum PUT OI on the 24,900 and then 25,000 strikes.
Writing call is seen on the 25,000 and then 25,300 strikes, while writing is seen on the 24,900 and then 25,000 strikes. Taparia noted that the option data suggests that a wider trade range between 24,500 and 25,500 zones, with an immediate range between 24,700 and 25,200 levels. Spread strategy for potential benefits of the bullish attitude together with market volatility.Bull Call Spread
Traders can use a bull’s call to earn money with a profit from a potential marketbound. It includes buying and selling on -call options with the same expiry date, but different exercise prices. The purchased call is usually in-the-money (ITM) or AT-the-Money (ATM), while the call sold is outside the money (OTM). This strategy results in a net debit for the trader, because the costs of the ITM/ATM call are partially compensated by the cash flow generated by the short allocation of the OTM call.
Ehinmarkets.com(Prices from August 19)
Below is the payment graph of the strategy:
Ehinmarkets.com(Source: Motilal Oswal)
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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