The Indian stock market recovered from previous session’s losses to trade higher on Thursday, despite a mixed trend in global markets. The benchmark indices, Sensex and Nifty 50, gained nearly half a percent each, resuming the upward trend.
Gains in heavyweights like Reliance Industries, Hero MotoCorp, ONGC, M&M, Asian Paints, Maruti Suzuki, Tata Motors, among others lifted the benchmark Nifty 50 above 25,500 level.
In the previous session, Nifty 50 dropped 88.40 points, or 0.35%, to 25,453.40, forming a narrow-bodied candle, suggesting consolidation.
Nifty Options Highlights
Nifty 50 slipped by 0.8% on Wednesday, accompanied by a drop of 2.8% in open interest (OI), indicating unwinding of the long position. Bank Nifty saw 0.6% cut in price alongside a 0.5% downtick in open interest, suggesting long positions were unwound.
The highest Nifty Open Interest on the Call side is at the 25,600 strike, followed by 25,500 and 25,700, which could act as resistance levels. On the Put side, the highest Nifty OI is at 25,400, followed by 25,500 and 25,200, which may serve as support levels, according to Axis Securities.
The premium for the At-the-Money option is ₹374, indicating a likely trading range for the week between 24,900 and 25,900.
Nifty Options Strategy for 10 July 2025 Expiry
Recommended Strategy: Bull Call Spread
Axis Securities has suggested a Bull Call Spread strategy for Nifty options contracts expiring on 10 July 2025, reflecting a moderately bullish outlook.
A bull call spread strategy involves buying a call option with a strike price slightly below the current market price of the underlying asset, which is Nifty 50, and simultaneously selling another call option with a higher strike price (out-of-the-money), both with the same expiration date. This strategy is applied when the outlook is moderately bullish.
Strategy Details
Buy Nifty 1 lot 25,450 Call at ₹175 – 185
Sell Nifty 1 lot 25,650 Call at ₹90 – 110
The strategy involves buying one lot of the 25,450 strike Call Option and simultaneously selling one lot of the 25,650 strike Call Option, Axis Securities said.
Risk-Reward Analysis
According to analysts at Axis Securities, the potential maximum risk for this strategy is ₹5,850, whereas the potential maximum reward is ₹9,150.
“Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward,” said the brokerage firm.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
