Nifty Bull Spread Strategy by HDFC Securities

Nifty Bull Spread Strategy by HDFC Securities
Company:	Nifty
Brokerage:	HDFC Sec
Date of report:	July 13, 2023
Type of Report:	Techno-Funda
Recommendation:	Buy
Upside Potential:	100%
Summary:	Primary trend of the Nifty is bullish as it is trading above all its important moving averages. Breadth of the market is very strong, which indicates higher probability of Nifty breaking out from the range of 19300 to 19500 levels on the upside. Therefore, we expect Nifty to trend higher in the coming week till 20 July 2023 expiry
Full Report:	Click here to download the file in pdf format
Tags:	HDFC Sec, NIFTY

Primary trend of the Nifty is bullish as it is trading above all its important moving averages. Breadth of the market is very strong, which indicates higher probability of Nifty breaking out from the range of 19300 to 19500 levels on the upside. Therefore, we expect Nifty to trend higher in the coming week till 20 July 2023 expiry. We therefore recommend a Bull Spread strategy in Nifty to profit from this view. Action to be taken Buy Nifty 19500 Call @Rs 73.45 & Simultaneously Sell Nifty 19700 Call at Rs 19.05 (20 -July Expiry) (Approximate margin payable for the strategy Rs 19385 (for exact margin, pls consult risk team email or check margin calculator on website) Max Profit Rs 7280 Max loss Rs 2720 Breakeven point: 19555 Risk Reward Ratio: 1:2.68 Please note that the spread position may be exited early depending on the reading of the market Related