Nifty 50 Trading Strategy: Analysts recommend Bull Call Spread options strategy for 7 July expiry

The Indian stock market traded flat amid volatility on Tuesday, following mixed cues from global markets, as investors remain cautious about the uncertainty over the US-Iran peace talks and rising crude oil prices.

The BSE Sensex traded 52.19 points, or 0.07%, lower at 76,676.18, while the Nifty 50 was down by 18.75 points, or 0.08%, at 23,927.50. The Bank Nifty index fell 54.30 points, or 0.09%, to 57,673.05. Broader markets outperformed the frontliners, as the Nifty Smallcap 100 and the Nifty Midcap 100 indices rallied over half a percent each.

Among sectors, Nifty Auto, Nifty Realty and Nifty Pharma witnessed gains, while Nifty IT, Nifty FMCG, Nifty Metals and Nifty PSU Banks were under selling pressure.

Maruti Suzuki India, Titan Company, Bajaj Finance, Tata Motors Passenger Vehicles and Adani Ports & SEZ were the top gainers On the Nifty 50 index, while Eicher Motors, Tata Consumer Products, Tata Consultancy Services (TCS), Infosys and Wipro were the top index losers.

Nifty Open Interest Distribution

In the options segment, the highest Nifty Open Interest (OI) on the Call side is at the 24,000 strike, followed by 24,100 which could act as resistance levels. On the Put side, the highest OI is at 23,500 followed by 24,000 which may serve as support levels, Axis Securities said.

The premium for the At-the-Money option is ₹373, indicating a likely trading range for the week between 23,650 and 24,250, it added.

Nifty Options Strategy for 7 July 2026 Expiry

Recommended Strategy: Bull Call Spread

Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 7 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.

Strategy Details

Buy 1 lot of Nifty 24,000 Call at ₹160 – ₹180

Sell 1 lot of Nifty 24,300 Call at ₹55 – ₹75

Break Even Point: 24,108

The strategy involves buying one lot of the 24,000 strike Call Option and simultaneously selling one lot of the 24,300 strike Call Option.

Risk-Reward Analysis

According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹6,988, whereas the potential maximum reward is ₹12,511.

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.

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