Reliance: Chart set up and trading strategy
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Reliance
We are looking at Daily chart of Reliance Industries
Observations
- 2420-2450 has the potential to act as resistance
- One may also look at the Red Line of Resistance as potential supply zone
- 2180-2220 has the potential to provide support to the stock
- The Green Line of Support comes around 2163
Given the chart setup,
My view: Rangebound between 2220-2450
My trading strategy: Short strangle strategy for Mar 2023 series
Sell 29 Mar 2500 Call option &
Sell 29 Mar 2200 Put option
Understanding risk profile and reward potential
The strategy has a profit potential of approximately 14.5% till 29 Mar 2023 on Margin requirement and has in built loss protection
- for a fall up to 2142 on the downside and
- for a rise up to 2558 on the upside
Review points for me
2220 on the downside &
2450 /2485 on the upside
The review points should give ample scope to adjust / exit in case view is getting invalidated.
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
We are looking at Daily chart of Reliance Industries
Observations
- 2420-2450 has the potential to act as resistance
- One may also look at the Red Line of Resistance as potential supply zone
- 2180-2220 has the potential to provide support to the stock
- The Green Line of Support comes around 2163
Given the chart setup,
My view: Rangebound between 2220-2450
My trading strategy: Short strangle strategy for Mar 2023 series
Sell 29 Mar 2500 Call option &
Sell 29 Mar 2200 Put option
Understanding risk profile and reward potential
The strategy has a profit potential of approximately 14.5% till 29 Mar 2023 on Margin requirement and has in built loss protection
- for a fall up to 2142 on the downside and
- for a rise up to 2558 on the upside
Review points for me
2220 on the downside &
2450 /2485 on the upside
The review points should give ample scope to adjust / exit in case view is getting invalidated.
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Nota
A month back I had suggested that 2420-2450 may act as resistance for RelianceOn 17th Feb Reliance made a closing high of 2440 and yesterday it made a closing high of 2417.
Now again back to the middle of the blue channel.
Strategy update
2200 Put and 2500 Call option both are in single digits. Consider to book profits
Penerbitan berkaitan
Penafian
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