 "Nifty signals consolidation: Today's top trading strategy explained")
Recommended strategy:
- Nifty Short Strangle
- Expiry: 24APR 2025
- Strike Prices: Sell 23500 Put @19 and Sell 24600 Call @17
- Net Premium Inflow: 36 points
- Stop Loss: 70
- Target: Entire Premium Received
Rationale :
- Nifty extended its positive momentum on Monday, closing above the 24,100 mark with a strong gain of 1.15 per cent; however, short-term technical indicators have entered overbought territory, suggesting markets may consolidate.
- 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.
- The current setup favours a range-bound outlook, with no immediate trigger for heightened volatility.
- A Short Strangle strategy is well-suited to capitalise on time decay and performs best in low-volatility, sideways markets.