Nifty may stay 23,700-24,600 range next week: What's best trading strategy?

Recommended Strategy:

• Strategy: Nifty Short Strangle
• Expiry: 30- APR-2025
• Strike Prices: Sell 23,500 Put @30 and Sell 24,800 Call @30
• Net Premium Inflow: 60 points
• Stop Loss: 110
• Target: Entire Premium Inflow

Rationale:

• Short-term technical indicators are overbought.
• Also, the 24,550 zone aligns with the 61.8 per cent Fibonacci resistance—suggesting a possible hurdle.
• On the lower side, 23,800 now act as key support on a role-reversal basis.
• Strategy View: With a likely trading range of 23,700–24,600 in the coming week, a Short Strangle strategy could be an effective way to capitalise on expected consolidation.
• This strategy is profitable if the market remains in a tight range, benefiting from both volatility contraction and Theta decay.

(Disclaimer:This article is by Sahaj Agrawal, senior vice president, head of derivatives research, Kotak Securities. Views expressed are his own)