Nifty 50 Trading Strategy: Analysts recommend Bear Put Spread options strategy for 24 July expiry
Tech Mahindra, IndusInd Bank, Infosys, SBI Life Insurance, ICICI Bank and Larsen & Toubro (L&T) shares were the top losers among the Nifty 50 constituents.
In the previous session, the equity market ended flat with a positive bias. The Sensex rose 63.57 points, or 0.08%, to close at 82,634.48, while the Nifty 50 closed 16.25 points, or 0.06%, higher at 25,212.05.
The highest Nifty Open Interest (OI) on the Call side is at the 25,300 strike, followed by 25,200 which could act as resistance levels. On the Put side, the highest Open Interest is at 25,000, followed by 25,200 which may serve as support levels, according to Axis Securities.
The premium for the At-the-Money option is Rs. 282, indicating a likely trading range for the week between 24,900 and 25,500, it added.
Axis Securities has suggested a Bear Put Spread strategy for Nifty options contracts expiring on 24 July 2025, reflecting a moderately bearish outlook.
A bear put spread involves buying a put option and selling another put option with a lower strike price on the same underlying asset, which is Nifty 50 here, and the same expiration date. This strategy is used when the view is bearish.
Buy Nifty 1 lot 25,200 Put at ₹ 110 - 130
Sell Nifty 1 lot 25,000 Put at ₹ 55 - 65
This strategy involves buying one lot of Nifty Put Option of 25,200 strike and simultaneously selling one lot of Nifty Put Option with a lower strike price of 25,000, Axis Securities said.
According to analysts at Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹ 4,425, whereas the potential maximum reward is ₹ 10,575.
'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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Textile industry flags risks from cotton MSP hike
Ahmedabad: The central govt recently increased the minimum support price (MSP) for kapas (raw cotton), raising rates across all categories — medium staple from rs 7,460 to rs 7,560 per quintal, medium long staple from rs 7,710 to rs 7,860, long staple from rs 8,010 to rs 8,110, and extra long staple from Rs 8,310 to Rs 9,310. While aimed at supporting farmers, the hike has sparked concern among Gujarat's textile industry, which fears that higher raw material costs will erode India's competitiveness in the global market. Industry leaders argue that enhancing cotton productivity, rather than simply raising MSP, offers a more sustainable path for increasing farmers' incomes without straining manufacturers. "India holds 37% of global cotton acreage but contributes only 23% to production," said Jayesh Patel, senior vice-president of the Spinners' Association of Gujarat. "Focusing on yield improvement is key if India wants to lead globally. " Manufacturers are also seeking the removal of import duties on cotton. "Indian cotton is now the costliest globally, which directly affects our competitiveness," said Bharat Chhajer, former chairman of PDEXCIL. "At a time when global brands are considering India as an alternative to Bangladesh, expensive cotton makes us less viable." You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad According to cotton trader Arun Dalal, the revised MSP structure incentivises farmers to supply better-quality cotton through price linkages based on moisture content. "Sowing activity picked up this season, and higher arrivals could help farmers secure better returns," he said. However, Dalal warned that sustained high cotton prices may put further pressure on spinning units and yarn manufacturers already grappling with weak demand and shrinking margins. Industry experts are urging the govt to balance farm support with safeguards for the textile sector. Removing import duties, boosting productivity, and easing logistics costs remain key demands.
Indian Express
an hour ago
- Indian Express
India-US interim trade deal talks: Both sides wrap up extended round of trade negotiations
India and the US have concluded a week-long round of trade negotiations aimed at finalising an interim trade deal seen as crucial for India to avoid reciprocal tariffs and gain an edge over its Asian peers, The Indian Express has learned. This round of talks assumes significance as the US has set a fresh deadline of August 1 to implement reciprocal tariffs. While US President Donald Trump reiterated that a deal with India is close, India could face tariffs of up to 26 per cent if both countries fail to reach an agreement. Government officials have maintained that India is aiming to sign a bilateral trade agreement (BTA) by the end of the year, which would provide market access in labour-intensive sectors and ensure a significant tariff differential compared to its Asian peers. Talks have encountered complications over agriculture, with the US seeking market access for genetically modified (GM) products such as soya and corn, along with broad-based access across sectors. However, the farmers' body Indian Coordination Committee of Farmers Movements (ICCFM) has urged the government to exclude all aspects of agriculture from the US trade deal in order to protect the interests of Indian farmers. Government officials have said that, as of now, only US baseline tariffs of 10 per cent and sectoral tariffs on steel and aluminium — along with fentanyl-related tariffs on China — have come into effect. 'These have resulted in higher duty collections for the US, and their imports from China and specific sectors have gone down,' an official said. While sectoral tariffs — such as 50 per cent on steel, aluminium and copper — are already disrupting India's exports to the US, Trump has also threatened steep tariffs on BRICS countries over their challenge to the US dollar and has warned of duties on buyers of Russian oil. Notably, India is a top importer of Russian oil. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Indian Express
2 hours ago
- Indian Express
RBI's record banking system fund infusion is not boosting loan growth
The Reserve Bank of India (RBI) began pumping money into the banking system in December 2024, while the Monetary Policy Committee (MPC) started cutting interest rates in February. However, the MPC's 100 basis points (bps) of rate cuts and the lakhs of crores of money provided by the RBI to the banking system has had little impact on demand for loans. In fact, credit growth has almost halved from the middle of 2024. And economists think loan growth may fall further in the coming months. According to data released on June 30 by the RBI, non-food credit extended by Indian banks was up 9.8 per cent year-on-year (YoY) as at the end of May, down from 11.2 per cent in April and 16.2 per cent a year ago, after excluding for the impact of the merger of HDFC Bank with Housing Development Finance Corporation in July 2023. The sector-wise breakdown makes for similar reading. Take loans to industry, for instance, which showed a growth of just 4.9 per cent YoY at the end of May, down from 6.7 per cent in April and 8.9 per cent a year ago. At the same time, the amount of money the RBI has pushed into the banking system has ballooned. It first cut banks' Cash Reserve Ratio (CRR) by 50 bps in December 2024, after which — through a variety of instruments, such as purchases of government bonds — the Indian central bank added nearly Rs 10 lakh crore into a system that was tight on cash starting the second half of 2024 due to tax outflows and the RBI's own operations in the foreign exchange market. And while the rupee stabilised before the RBI loosened its grip somewhat in 2025, demand for bank loans has continued to weaken even as borrowing costs have fallen. According to RBI data, new bank loans were around 20 bps cheaper in May compared to a year ago. Wasted liquidity surplus? According to J.P. Morgan economists, the continued addition of liquidity into the banking system by the RBI is a futile attempt to bring down lending rates of banks — beyond a point. In a note published earlier this month, the investment bank's economists said 'there is no evidence that liquidity 'causes' credit or deposit growth. If anything, the causality is reversed, with credit driving liquidity growth, through the deposit and Cash Reserve Ratio channel.' As per its analysis, J.P. Morgan found that the entire impact on banks' lending rates from changes in banking system liquidity is because of movements in the interest rate at which banks lend to each other — the 'call rate'. As such, once the call rate declines to a certain level, there is no incremental benefit in terms of a further decline in banks' lending rates from the provision of additional liquidity by the RBI. The central bank, seemingly, has taken note of this too, and in recent days looked to suck out the excess money it has pumped into the banking system. Since June 27, the central bank has removed almost Rs 7 lakh crore. However, given the temporary nature of these operations, much of these removed funds are already back with banks. But even before the RBI began conducting these temporary operations — called variable rate reverse repos — to drain out excess money, banks were already keeping them at a central bank facility in return for a fixed rate of interest of 5.25 per cent. However, the amount banks were choosing to keep at this so-called Standing Deposit Facility has more than quadrupled in the last one year — from a daily average of Rs 58,817 crore in June 2024 to Rs 2.59 lakh crore in June 2025. Clearly, there are few takers for loans from banks. Will the weak loan growth continue? Weakness in demand for loans has been a concern for the MPC, which cut the policy repo rate by a larger-than-expected 50 bps to 5.5 per cent on June 6 to push banks to cut their lending rates faster. But this 'transmission' of policy rate cuts to lending rates of banks — which can take up to one year, although the RBI over the years has tried to make this process faster — depends on a variety of factors. According to Nomura economists Sonal Varma and Aurodeep Nandi, a faster and more complete transmission of changes to the policy repo rate requires not just excess money in the banking system but also a lower credit-deposit (CD) ratio, which is an indicator of the proportion of a bank's deposits sent out as loans. 'The periods of maximum pass-through of policy rate cuts have typically happened in periods when the credit-deposit ratio was much lower in the 70-74 per cent range,' Varma and Nandi said in a report on July 8, adding that the ratio was currently just below 80 per cent. According to them, the RBI's latest bank lending survey is indicative of moderating demand for loans, especially for retail and personal loans, while the global trade uncertainty coupled with rising imports from China is keeping industrial capacity utilisation subdued. As a result, Varma and Nandi see credit growth falling even further to 7-8 per cent by March 2026. Need for loan demand As RBI Governor Sanjay Malhotra noted on June 6, for banks to lower their lending rates, there needs to be demand for loans. And demand for loans depends on the macroeconomic conditions and appetite for credit. Clearly, the fact that the RBI has felt the need to inject so much money into the banking system and reduce the policy repo rate by 100 bps in a matter of months is a sign of weakness in macroeconomic conditions — even if the annual GDP growth rate is seen stable around 6.5 per cent. '…credit demand follows the momentum in economic activity and often continues to rise despite a rise in interest rates. The reverse is also empirically observed. If credit demand is moderate, a reduced interest rate may not boost it over the next 12-24 months. For any impact, it is critical to hold the rate steady for 18-24 months,' the Boston Consulting Group said in a report this month. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
