If DR REDDY manages to break that Resistance and if significant Put Writing would be seen their it will become a Support
Then go short on 3150PE with SL = 6 and Target would be near 3250
This Short will be risky and RR ratio may not be good here
As Max Pain of DR REDDY stands at 3100 Strike and this impulsive 5% move was news-driven it won't be sustained for a long time and we may see a sudden fall in this Stock.
The is already at 78.34 which is almost 8.34 bps in Overbought zone
Highest OI is at 3200 Strike making it Strong Resistance
If this Resistance is sustained and pushes DR REDDY downwards then,
Short 3300 CE
Short 3250 CE
Short 3200 CE
Short 3150 CE
And Apply a Short Straddle at 3100 Strike that is,
Short 3100 CE
Short 3100 PE
Happy Trading ...
Max Pain point is still at 3100 Strike and PCR is 1.03
PCR shows high Bullish sentiment
Wait for a Strong Confirmation on the Level marked in the charts.
Profit at 3300CE = 3.1
Profit at 3250CE = 8.6
Profit at 3200CE = 19.25
Profit at 3150CE = 33.15
Net Profit = 64.1 * 250 = 16025