F&O Radar| Deploy Iron Butterfly Spread in Nifty to gain from capped upside

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A neutral options strategy such as the Iron Butterfly, centred around 25,100, offers a balanced approach to profit from consolidation,

Synopsis

The Nifty index broke out of a downward sloping channel, closing at 25,112 — decisively above key technical levels like the 20-day SMA, 40-day EMA, and 61.8% Fibonacci retracement, reinforcing strong support in the 24,500–24,600 zone. Preeti K Chabra of Trade Delta notes that RSI and price action suggest continued bullish momentum, but rising geopolitical tensions may inject volatility.

The Nifty index broke out of a downward sloping channel on Friday, rising 319 points (1.29%) to close at 25,112 — decisively above the 20-day SMA (Bollinger Band midline) at 24,863, which now acts as immediate support.The index continues to trade:Well above the 40-day EMA at 24,598Above the lower Bollinger Band at 24,530Above the 61.8% Fibonacci retracement level at 24,545 (from the swing low of 21,743 on April 7, 2025, to the high of 26,277 on

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ETMarkets.com

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