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Here's Nifty trading strategy suggested by Sahaj Agrawal of Kotak Sec

Significantly, call OI at 24,000 and put OI at 23,500 & 23,000, suggesting a well-defined trading range that supports a short, strangled setup

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Sahaj Agrawal Mumbai

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Recommended Strategy: Nifty Short Strangle

  • Strategy: Nifty Short Strangle
  • Expiry: April 3, 2025
  • Strike Prices: Sell 23,000 PE and Sell 24,200 CE
  • Net Premium Inflow: 46
  • Stop Loss: 90
  • Target: Entire premium inflow

Rationale:

  • Strong resistance is observed at 23,900–24,000, while key support lies at 23,400.
  • Nifty is likely to trade within a defined range (23,400–23,900) before making a decisive move.
  • Significantly, call OI at 24,000 and put OI at 23,500 & 23,000, suggesting a well-defined trading range that supports a short, strangled setup.
  • Time decay (Theta) will benefit the strategy as long as Nifty remains within the expected range, leading to gradual premium erosion.
(Disclaimer: This article is by Sahaj Agrawal, senior vice oresident, head of derivatives research, Kotak Securities. Views expressed are his own.)
 

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First Published: Mar 28 2025 | 7:14 AM IST

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