Sahaj Agrawal of Kotak Securities recommends Short Strangle on Nifty

Strategy Details:

 

Strategy: Nifty Short Strangle

Expiry: 13 March 2025

Strike Prices: Sell 22,000 PE and Sell 22,900 CE

Net Premium Inflow: 24

Stop Loss: 46

Target: Capture the entire premium inflow

 

Rationale:

 

-- Immediate resistance lies at 22750-22,800, a level that previously acted as support in Jan-Feb 2025, while support lies near the putative swing lows near 22,000-21950. 

-- Currently, the market is lacking the momentum to break decisively above 22,800 or below 22,000. Nifty is likely to consolidate sideways within the same in the near term.

  -- A clear move above 23,100 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 a senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.)