Oversold Nifty could see a short-term rebound: Analysts
Indian stock indices, Sensex and Nifty, have extended their losing streak for a fifth week. Analysts suggest the indices have entered oversold territory, indicating a potential short-term rebound. Traders are advised to consider specific strategies like a Bull Put Spread for the September 29, 2026 expiry. Several top stocks, including Kotak Mahindra Bank and BHEL, are recommended for buying with…
The Nifty and Sensex have been on a losing streak for five consecutive weeks, the longest such period in 14 months. The Nifty has slid nearly 2% and dipped below important moving averages, suggesting it has entered an oversold territory. This has given analysts a chance to see a short-term rebound, according to TANMAY SHAH, the research head at SIHL.
In light of the current oversold condition, Shah suggests that traders might consider a Bull Put Spread for the September 29, 2026 expiry. This strategy involves selling the 23,200 Put and buying the 22,950 Put. It offers a good risk-reward profile and allows traders to benefit from time decay if Nifty remains flat or stays above 23,200. The approach is suited for a slightly bullish-to-neutral outlook for the month.
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