How to trade Nifty on April 29? Sahaj Agrawal of Kotak Securities suggests
Short-term technical indicators suggest that the market is temporarily overbought, increasing the probability of near-term consolidation
 "How to trade Nifty on April 29? Sahaj Agrawal of Kotak Securities suggests")
Recommended Strategy:
- Strategy: Nifty Short Strangle
- Expiry: 30APR 2025
- Strike Prices: Sell 23,400 Put @14 and Sell 24,700 Call @13
- Net Premium Inflow: 27
- Stop Loss: 52
- Target: Entire Premium Received
Rationale :
- On Monday, Nifty opened flat and gradually inched higher throughout the day, eventually closing strong with a 1.20 per cent gain
- Short-term technical indicators suggest that the market is temporarily overbought, increasing the probability of near-term consolidation.
- Significant Open Interest build up is seen at the 24,500 Call and 23,500/24,000 Put strikes, indicating a likely trading range between these levels.
- A Short Strangle strategy is well-suited to capitalize on time decay and performs best in sideways markets.
(Disclaimer:This article is by Sahaj Agrawal, senior vice president, head of derivatives research, Kotak Securities. Views expressed are his own)