indiamarketoutlook

Hindalco: Chart set up and trading strategy

Short
NSE:HINDALCO   HINDALCO INDS
Hindalco
CMP 486

Potential Line of resistance around expiry comes at 513 levels
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Given the set up, one may consider to Bear Call spread strategy

Sell 510 Call option around 5 &

Buy 540 Call Option currently around 1.7


Lot size 2150

Net receivables 3.3 * 2150 = Rs 7095

Yield potential of approximately 8% on margin requirement
Importantly strategy has in built loss protection for a rise in stock price up to 513.30 till expiry

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
Comment:
Below the orange line doors would open up on downside and probability of Hindalco potentially falling up to 468 / 463 levels might be higher
Comment:
As Technical Analysis reflected, we see Hindalco falling further once it broke the orange line

Follow for more such ideas
But don't follow blindly
Learn to identify opportunities independently

Happy trading...!!!🙂