Indian benchmark indices have witnessed a sharp rebound in sentiments lately on the back of truce between the US and Iran, with the overall bias shifting from positive for the current Series. Beside the US-Iran deal, fall in the crude oil prices and recovery in the Indian rupee are the major triggers for the rally in the Indian equities. However, FII's selling remains a major concern.

Sahaj Agrawal, Head of Derivatives Research at Kotak Securities maintains a positive bias and sees the expiry support at 23,880. Nifty staged a strong recovery, advancing towards the 24,200 mark. While it has encountered some resistance near this zone, the ongoing consolidation appears to be a temporary pause rather than a sign of weakness, he said.

"For the expiry day, the setup remains flat-to-positive, with expectations of a gradual and measured advance rather than a sharp directional move. Fresh momentum is likely to emerge only on a sustained move above 24,200. The immediate trading range is seen between 23,880 and 24,200," Agrawal said.

To recall, Nifty50 settled at 24,102.90, rising 89.80 points or 0.37 per cent on Monday. The Nifty Bank index advanced nearly 250 points, 0.43 per cent to end the session 57,935.60, while volatility gauge, India VIX, eased nearly a per cent to 12.84 mark.

According to Kotak immediate support is placed at 23,880 for the weekly expiry due today. As long as Nifty sustains above this level, the short-term bias remains positive. A breach below 23,880, however, could restrict further upside and lead to a more subdued trading session.

FIIs segment has been on the selling side in the cash segment and remains to be seen if that stance changes. However, selling of overseas investors was very small on a net-net basis on Monday, but the recent selling has been relentless, which exodus nearing Rs 63,500 crore mark in June so far.

Agrawal suggested that traders may consider a buy-on-dips approach near 24,050, while a decisive breakout above 24,200 could pave the way for the next leg of the up move. The Kotak Securities analyst has suggested followed strategies, which traders may consider, based on their capital management and risk-appetite:

1. Short Strangle in Nitty (23,900–24,400)
Deploy a short strangle by selling the 23,900 Put and 24,400 Call to benefit from a range-bound market. The strategy works best if Nifty stays within this zone; maintain a strict stop loss at a premium outflow of Rs 34 and aim to capture the entire premium decay as your target.

2. Buy 24,150 Call Nifty
Buy the Nifty 24,150 Call in the Rs 60–70 range with strong support placed at 24,050. Maintain a stop loss at Rs 35 and target Rs 125–150 on an upside breakout. 

A study published by the SEBI reveal that over 93% of individual retail traders in the equity Futures & Options (F&O) segment incur net financial losses. Please do you own research or contact your financial planner before taking any position.