The long-term outlook stays constructive for the inventory of ICICI Financial institution (₹513.5). If the present development sustains and closes above ₹521, it has the potential to succeed in ₹550. The scrip finds a right away assist at ₹499 and a detailed beneath that stage will drag the inventory in direction of ₹469. So long as ICICI Financial institution stays above ₹438, the long-term constructive outlook stays intact. Nonetheless, we anticipate the inventory to maneuver in a slender vary with a downward bias within the brief time period.

F&O Pointers: ICICI Financial institution witnessed a rollover of 14 per cent in January sequence on the finish of the penultimate week of December sequence expiry, which is sort of common. The ICICI Financial institution January futures closed at ₹515.60 towards the spot value of ₹513.55 and the December futures of ₹513.65, signalling the rollover of lengthy positions.

Choice buying and selling signifies accumulation of open curiosity at ₹550-call (₹550 CE) and ₹500-put (₹500 PE) in January sequence, signalling the attainable buying and selling vary for the inventory.

Technique: We advise merchants to contemplate bear-put-calendar-spread choices technique on ICICI Financial institution. This may be constructed by promoting ₹490-put (₹490 PE) of the present month and concurrently shopping for the identical strike put choice of subsequent expiry. These choices closed with a premium of ₹1.45 and ₹11.40, respectively. Which means one has to shell out ₹9.95 per contract, i.e., ₹13,681.25 (market lot: 1,375 shares).

The utmost loss could be the premium paid, whereas revenue potentials are large if ICICI Financial institution stays above ₹490 within the subsequent 4 days and begins slipping from January 1. An in depth at or beneath ₹480.05 (in January) will flip the commerce constructive.

We advise merchants to carry this place until the expiry of subsequent sequence.

Comply with-up: The lengthy put technique on Bharti Airtel reached goal on Monday itself.