Nifty Today: Sahaj Agarwal of Kotak Sec suggests 'Short Strangle' on index

Stock Market Today, Nifty Today: Immediate resistance for Nifty share price lies at 22,800, followed by 23,000

Nifty Today, March 7, 2025:

  Strategy Details:

 

Strategy: Nifty Short Strangle

  Expiry: 13 March 2025 

Strike Prices: Sell 22,000 PE and Sell 23,000 CE 

Net Premium Inflow: 50

  Stop Loss: 98 

Target: Capture the entire premium inflow

 

Rationale:

 

>> After a five-month, 16.4-per cent correction from its all-time high of 26,277, Nifty share price has found support near 21,900, a key level from the March-May 2024 consolidation.

  >> Immediate resistance lies at 22,800, a level that previously acted as support in Jan-Feb 2025, followed by 23,000, which aligns with the downward trendline defining the ongoing downtrend.

  >> Range-Bound Market Likely: With momentum lacking to break decisively above 23,000 or below 21,900, Nifty is likely to consolidate sideways in the near term with stock-specific action taking precedence. 

>> A clear move above 23,000 or below 21,900 will determine the next major trend. Until then, markets are expected to remain range-bound and consolidate. 

>> A short Strangle is apt under the current conditions.    ===================================  Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.