Short ACC for target of 2039. 9 EMA crosses below 20 and 50 EMA

Hello Traders,

ACC looks bearish from all the time frame charts.
To trade the bearish side we need to either sell the future or we need to buy put options or we can sell Call Options.

1. From Call side the only viable strike price is that of 2200 CE 26th August (LTP 181). One can sell this option above 150.

2. And another way is to buy deep in the money Put option like 2420 PE 26th August (LTP 102. 40 ). It is available at a discount of 28 Rs comparing the strike price and spot price.

3. The other way to trade this move is to simply sell Future. It requires huge margin.

My favourite trades will be 1st and 2nd one.

The first one benefits from premium decay, and downward move. Some say that option selling can have unlimited loss (thats true without SL).
The second one simply moves with the spot price so no momentum fears.

Our SL will be dynamic and based upon the spot price.We will keep our SL for all the three approaches above at 2371. So we will exit our position if the Spot price crosses above 2270 on daily basis meaning if it trades above 2270 around 03:25 pm then we will exit.

Happy Trading!


Booked 72k losses.
Sold 1 lot future ACC at 2287 16 Augexpiry