Nifty 50 Trading Strategy: Analysts recommend Bull Call Spread options strategy for 28 July expiry

The Indian stock market benchmark indices, Sensex and Nifty 50, traded lower on Tuesday, weighed down by selling in IT and banking stocks, amid weak global market cues.

The BSE Sensex declined 283.28 points, or 0.36%, to trade at 77,425.24, while the NSE Nifty 50 was down 76.15 points, or 0.31%, at 24,162.35. The Bank Nifty index traded 80.55 points, or 0.14%, lower at 57,864.45.

Broader markets outperformed the frontline indices, as the Nifty Smallcap 100 gained 0.55% and the Nifty Midcap 100 index was up 0.24%.

Among sectors, Nifty IT, Nifty FMCG, Nifty PSU Bank and Nifty Oil & Gas reeled under selling pressure, while gains were seen in Nifty Metal, Nifty Pharma, Nifty Realty and Nifty Auto indices.

HDFC Bank, Infosys, Reliance Industries, Bajaj Auto and Tata Consultancy Services (TCS) were the top losers on the Nifty 50 index, while Shriram Finance, Bajaj Finserv, InterGlobe Aviation, UltraTech Cement and HCL Technologies were the top gainers.

In the options segment, the highest Nifty Open Interest (OI) on the Call side is at the 24,500 strike, followed by 24,300 which could act as resistance levels. On the Put side, the highest OI is at 24,200 followed by 24,000 which may serve as support levels, Axis Securities said.

The premium for the At-the-Money option is ₹363, indicating a likely trading range for the week between 23,800 and 24,650, it added.

Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 28 July 2026, expecting a moderately bullish view.

A bull call spread strategy involves buying a call option with a strike price slightly lower than 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.

The strategy involves buying one lot of the 24,250 strike Call Option and simultaneously selling one lot of the 24,500 strike Call Option.

According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹6,435, whereas the potential maximum reward is ₹9,815.

Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward, said the brokerage firm. It suggested to enter and exit all the legs in strategy together and square-off the strategy before the expiry session closes.

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.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate le...