The Indian stock market extended its rally for the third straight session on Tuesday, with the benchmark Sensex surging above 84,300 level, and the Nifty 50 hovering near 26,000 level.
The Sensex was up 380.13 points, or 0.45%, at 84,445.88, while the Nifty 50 traded 113.75 points, or 0.44%, higher at 25,981.05. Bank Nifty index rose 79.70 points, or 0.13%, to 60,749.05.
Eternal, Tata Steel, Bajaj Auto, Mahindra & Mahindra (M&M) and Maruti Suzuki India were the top gainers among the Nifty 50 constituents, while Bajaj Finance, Shriram Finance, Dr Reddy’s Laboratories, Asian Paints and HCL Technologies were the top index losers.
In the previous session, Nifty 50 index had rallied 173.60 points, or 0.68%, to close at 25,867.30, forming a Doji candle.
Nifty Options Highlights
In the options segment, the highest Nifty Open Interest (OI) on the Call side was at the 26,000 strike, followed by 25,800, marking key resistance levels. On the Put side, maximum open interest was seen at 25,600, followed by 25,800, indicating strong support zones, Axis Securities said.
The premium for the At-the-Money option is ₹329, indicating a likely trading range for the week between 24,600 and 25,500, it added.
Nifty Options Strategy for 17 February 2026 Expiry
Recommended Strategy: Bull Call Spread
Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 17 February 2026, predicting a moderately bullish view.
A bull call spread strategy involves buying a call option with a strike price slightly lower than current market price of the underlying asset, which is Nifty 50, and simultaneously selling another call option with a higher strike price (out-of-the-money). Both the options are with the same expiry date. This strategy is applied when the outlook is moderately bullish.
Strategy Details
Buy 1 lot of Nifty 25,900 Call at ₹145 – ₹165
Sell ​​1 lot of Nifty 26,200 Call at ₹45 – ₹55
The strategy involves buying one lot of 25,900 strike Nifty Call Option and simultaneously selling one lot of the 26,200 strike Nifty Call Option.
Risk-Reward Analysis
According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹6,630, whereas the potential maximum gain is ₹12,870.
Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward, said the brokerage firm. It suggested to enter and exit all the legs in strategy together and square-off the strategy before the expiry session closes.
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