Derivative Strategy Nifty: Short Strangle (30JAN2025 Series) Strategy Details: - Sell 23900 CE and Sell 22400 PE - Inflow: Rs 28 - Stop-Loss: Rs 56 - Target: Entire Premium (Maximum Profit: Rs 28) - Lot Size: 25 - Breakeven Points: Lower Breakeven: 22372; Upper Breakeven: 23928 - Maximum Profit Zone: Between 22400 and 23900 by expiry Rationale: - Over the past week, the market has broadly entered a consolidation phase, likely due to short-term oversold conditions. - For the week ahead, 22,800 is expected to act as a support while 23,500, a previous support level, now serves as a resistance on a role-reversal basis. Range-bound activity anticipated between these key support & resistance levels. - Significant open interest observed at 23,500/24,000 Call and 23,000/22,500 Put levels, indicating key trading zones. - The Put-Call Ratio (PCR) for the 30th January 2025 series stands at 0.90, reflecting neutral sentiment. =================== Disclaimer: Sahaj Agrawal, Senior Vice President, Head of Derivatives Research, Kotak Securities