 "Nifty Today: Sahaj Agarwal of Kotak Sec suggests 'Short Strangle' on index")
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
Also Read
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. ALSO READ: Bank Nifty: Nandish Shah of HDFC Sec recommends Bull Spread Strategy =================================== Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.