ICICI Bank’s (₹970.50) long-term outlook remains positive as long as it stays above ₹862. The short-term outlook is bullish as well with an immediate support at ₹944. Next support is at ₹925. If the stock of ICICI Bank maintains the current trend, it could cross the ₹1,000-mark soon.

F&O pointers: ICICI Bank August futures closed at ₹969.70 against the spot price of ₹970.50. The marginal discount is on account of ₹8 dividend that the company announced for which the ex-date is August 9. Option trading indicates that the stock could move in the ₹950-1,100 range.

Strategy: We advise traders to buy the 980-strike call, which closed at ₹14.35. As the market lot for ICICI Bank derivatives contract is 700, this strategy will cost traders ₹10,045, which will be the maximum loss in this trade. The maximum loss will happen if ICICI Bank stays at or below ₹980 on expiry. The position will be profitable whatsoever if the stock manages to move past ₹994.35.

The dividend will not result in any change in the strike price, as at ₹8, it is less than 2 per cent of the current price.

Traders should keep it in mind that the impending RBI monetary policy meeting (outcome on August 10) will cause volatility in the short term. We advise traders to hold the position for two weeks and can be reviewed later.

Follow-up: We had advised traders to sell the 200-call on Ashok Leyland. Those who are holding can continue to do so till the price of options reduces to ₹0.50.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading

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