DMART – Mixed Signals with Option Chain Clues

________________________________________________________________________________📈 DMART – Mixed Signals with Option Chain Clues | Option Chain + Price Action Analysis
🕒 Chart Type: 15-Minute
📆 Date: July 3, 2025
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🔍 What’s Catching Our Eye:
DMART is displaying notable volatility near its technical range. While the option chain reveals contrasting setups across strikes—with several Calls showing short build-ups and some Puts indicating long build-ups—the overall price action remains undecided. The current equity price (spot at 4348.70) is being carefully watched in relation to its normalized chart range.
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📌 What We’re Watching For:
We’re monitoring for a decisive move beyond the established range. A sustained move above the Top Range of 2464.4 (normalized chart level) could validate a bullish reversal; conversely, a breakdown below the Bottom Range of 2326.1 might trigger a bearish slide. Given the option chain dynamics, any clear directional breakout—supported by volume—will be key to shaping our view.
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📊 Volume Footprint:
Today’s volume is recorded at 1.83M, significantly higher than the previous 836.47k, indicating an active session. A continued high volume reading on a breakout or breakdown from our range will be critical for confirmation.
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📈 Option Chain Highlights:
• On the Call side, the 4,500 CE and 4,300 CE are showing strong short build-ups, while the 4,400 CE stands out with a long build-up—hinting at an emerging bullish bias if the price rallies. Additionally, the 4,600 CE continues to exhibit short build-up pressure.
• On the Put side, the 4,200 PE displays a strong long build-up, suggesting downside protection, and the 4,000 PE also shows long build-up. A notable short covering is observed in the 4,300 PE and the 4,250 PE shows additional long build-up.
These option-chain cues—combined with the volatility in the underlying—highlight the market’s mixed expectations.
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🔁 Trend Bias:
The bias remains directionally dependent—bullish if a reversal above the top range is confirmed, or bearish if the price falls below the bottom range.
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🧠 Trade Logic / Reasoning:
DMART’s price action is teetering near its critical range. The normalized technical levels (Top Range: 2464.4, Bottom Range: 2326.1) serve as key decision zones. On the options side, the presence of long build-up in the 4,400 CE suggests that, if the price reverses, buyers could step in. In contrast, the strong long build-up on the 4,200 PE underlines the protective positions if the price breaks lower. With a higher session volume amplifying the move’s significance, caution is warranted until a clear breakout or breakdown occurs.
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📍 Important Levels to Mark:
🔺 Top Range: 2464.4 – Look for a breakout or a reversal candlestick pattern with confirmatory volume
🔻 Bottom Range: 2326.1 – Watch for a breakdown or a bullish reversal pattern with volume support
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🎯 Trade Plan (Educational Purpose Only):
✅ Best Buy (Equity): Enter long on DMART if a robust bullish reversal is confirmed—ideally when the price reclaims above the top range (2464.4) with strong volume and supportive candlestick action.
✅ Best Sell (Equity): Take short positions if the price decisively breaks and holds below the bottom range (2326.1) on high volume.
✅ Best CE to Long: Opt for the 4,400 CE when the reversal is underway; its long build-up in the option chain signals the initiation of bullish interest.
✅ Best PE to Long: In a bearish scenario, consider the 4,200 PE—its long build-up indicates traders are positioning for a downside move.
🟢 Demand Zone: NA
🔴 Supply Zone: NA
⚠️ Invalidation Below:
Any bullish setup becomes invalid if DMART breaks and holds below the bottom range of 2326.1 (normalized level) with strong volume.
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⚠️ Disclaimer:
This post is for educational purposes only.
STWP is not a SEBI-registered advisor.
This is not a buy/sell recommendation.
Please consult your financial advisor before trading.
STWP is not responsible for any trading outcomes.
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