Business Standard

Friday, January 31, 2025 | 08:46 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Sahaj Agrawal of Kotak Securities recommends Short Strangle on Nifty

The analyst recommends to Sell Nifty January 23,900 Call, and 22,400 Put for the monthly derivative expiry.

NIFTY

Nifty(Photo: Shutterstock)

Sahaj Agrawal Mumbai

Listen to This Article

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 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 24 2025 | 8:46 AM IST

Explore News