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Sahaj Agrawal of Kotak Securities suggests 'Short Strangle' for Nifty today

Nifty today: 21,800 likely to act as a key support while 22,500 remains the immediate barrier on the upside

A man talks on phone at the National Stock Exchange as its new logo for for the benchmark Nifty50 is seen on a glass-wall, in Mumbai

A man talks on phone at the National Stock Exchange as its new logo for for the benchmark Nifty50 is seen on a glass-wall, in Mumbai

Sahaj Agrawal New Delhi

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Strategy Details:
  Strategy: Nifty Short Strangle
  Expiry: 6 March 2025
  Strike Prices: Sell 21,800 PE and Sell 22,500 CE
  Net Premium Inflow: 38
  Stop Loss: 74
  Target: Capture the entire premium inflow
 
Rationale:
  >> 21,800 likely to act as a key support while 22,500 remains the immediate barrier on the upside.
  >> Technical oscillators indicate a potential stabilising effect after the sharp selloff.
  >> Nifty is expected to remain confined within 21,800–22,500 over the coming few days.
  >> Short Strangles using the Weekly series are ideal to capitalise on Theta decay. 
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Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.
 

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First Published: Mar 04 2025 | 6:35 AM IST

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