F&O Radar | Deploy Call Back Spread strategy in Nifty to benefit from election result up move
Nifty opened with a gap up on Monday at 23,337, which was above its previous all-time high of 23,110, due to the exit poll impact. Market and investors seem to be bullish as they foresee the return of the current government.
The exit polls have indicated that the BJP-led NDA Alliance is going to take over the third term with a thumping majority. This marks their third term with even higher numbers of seats, vote shares, and pockets opening up in southern India.
“Exit polls show a new bullish trend is about to begin. Nifty is poised for a week full of volatility along with IV crush and a short unwinding rally,” said Shrey Jain, Founder of SAS Online.
The undertone is likely to be bullish, and if the numbers for seats of BJP alone inch higher, one may see upward momentum for the coming few days.
The Nifty range for the previous week was 22,500 serving as strong support. From here, along with exit poll data, Jain believes that the upside is now open to higher levels of 23,000. Any upside surprise on Tuesday in terms of seats would make Nifty settle further above ATH and 23,250 levels.
Nifty's upside target would be 23,250 – 23,500 with a strong base now at 22,500 — 22,550, while Bank Nifty would likely move beyond 50,000, with a strong base now at 48,900 – 48,600.
Foreseeing the bullishness on the return of BJP, Jain recommends deploying call back spread strategy for the traders.
CallBackSpread
A call-back spread is a multi-leg, risk-defined, bullish strategy, with unlimited profit potential. The strategy looks
