Nifty technical outlook: Here are key support & resistance levels to watch

Nifty technical outlook: With a likely trading range mentioned above for the coming week, a Short Strangle strategy could be an effective way to capitalise on expected consolidation

Recommended Nifty strategy:

• Strategy: Nifty Short Strangle
• Expiry: 5-Jun-2025
• Strike Prices: Sell 24,000 Put and Sell 25,500 Call
• Net Premium Inflow: 38 points
• Stop-loss: 75
• Target: Entire Premium Inflow

Rationale:

• Nifty is consolidating within a broad range of 24,500 and 25,100.
• Immediate key levels: Resistance near 25,100; Support at 24,450.
• Strategy View: With a likely trading range mentioned above for the coming week, a Short Strangle strategy could be an effective way to capitalise on expected consolidation.
• This strategy is profitable if the market remains in a tight range, benefiting from both volatility contraction and Theta decay.

(Disclaimer: This article is by Sahaj Agrawal, senior vice president, head of derivatives research, Kotak Securities. Views expressed are his own.)