Sahaj Agrawal of Kotak Securities recommends Short Strangle on Nifty
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
 "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
Also Read
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.)