The outlook remains positive for ICICI Bank (₹1,445.80). The stock finds immediate support at ₹1,338 and ₹1,285. Only a close below the latter will negate the current bull trend. However, if ICICI Bank sustains current uptrend, it can hit ₹1,725. Overall, we expect the current trend to persist with short-term volatility.
F&O pointers: ICICI Bank contracts witnessed a rollover of 93 per cent to June series, which is lower than May series but on par with three month average. ICICI Bank June futures closed at ₹1,455.30 against the spot price of ₹1,445.80, indicating rollover of long positions. Option trading indicates that the stock could move in the ₹1,400-1,500 range.
Strategy: Consider a bull call spread on ICICI Bank. Construct this by selling 1500-strike call and simultaneously buying 1450-strike call. These calls closed with a premium of ₹11.60 and ₹32 respectively. Net outlay will be ₹20.40/lot or ₹14,280 (market lot: 700 shares), which will be the maximum loss.
A profit of ₹29.6/lot or ₹20,720 is possible if ICICI Bank hits ₹1,500. Exit the position if the loss mounts to ₹8,400. We suggest holding the position for at least one week and can be reviewed in the following week.
Follow-up: Tata Motors was volatile but closed almost flat on a week-on-week basis. The recommended position is marginally negative. Those who are holding can retain the trade with a stop loss at ₹12.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on May 31, 2025
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