indiamarketoutlook

Ashok Leyland: Rough road ahead

Short
NSE:ASHOKLEY   ASHOK LEYLAND
Ashok Leyland

Observation

- Multiple resistance between 54-57 & then around 63 levels

- before September, it could be extremely difficult to cross the red zone

- below 47.65 target 45.50

- if Ashok Leyland starts trading below the green line, then it may be indication of further weakness & we may witness a quick fall towards 38-36 levels.


One may consider selling Ashok Leyland on rise especially around 55 odd levels or once it breaks 47.65

Alternatively one may consider selling Ashok Leyland 28-May-2020 Call option

Strike Price: 60

Price between 1.3 - 1.6

Lot size 8000

Target : 0.3 / 0

Time frame till 28 May 2020


Take care & safe trading...!!!

Comments

I have taken Ashok Leyland option Rs.30 PE (for 0.3) put for May month. Shall I keep it or exit. advice on it
Reply
@vlakeshri, I would not recommend such trade.

Let me explain you why...

Lets take a scenario...

Assume From levels of 50 the stock falls 40% down by end of May and closes at 30 on 28 May. even in that scenario you will be at complete loss.

Technically you will profit only if Ashok Leyland closes below 29.70 on or before 28 May.

You do realise that...do you? That's the implication of your trade. Lot size is 8000. its money. your hard earned Rs 2400 is at Big risk...

This is market... Any thing can happen but trading options with this kind of strategy will lead to more loss and pain than any gain. Same goes with Nifty. Do not think of Buying such deep out of money call and puts.

Take it as words of wisdom "It may give u profit once but the other 99 out of 100 times u will end up on losing side. Rather than losing money like this I would suggest you to invest a fraction of that amount in learning to trade options"
Reply
Nifty 50 will break up and move upward side to 10000 at the end of May Month...Can you please suggest on it.
As per current data and demand Nifty will bounce back downward to 8870 or 8690...is it correct? Shall I trade on nifty on Put or Call option
I am thinking..I will take 10000 or 10500 CE nifty for upward side and I will take put 8500 or 8700 for May month. Can you please suggest or guide me.
Also let me know ..Do you have any shares in which I will keep long term for good returns.
Small price shares ( range between 0.5 to 5.00 Rs ) which will hike in next 2 yrs - 3 Yrs.

Will I get an opportunity to buy shares like Month of March( Nifty market was down to 7500 ) in coming days of May month.

Thanks for your reply on Ashok Leyland.
Reply
Thanks for update
Reply
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