ICICI Bank: Chart set up
ICICI Bank
Observations
- We are looking at daily chart of ICICI Bank
- 5 day EMA and 21 day EMA at 1117 & 1119 respectively
- red line of resistance around 1133-1137 odd levels
- stock is near blue line of support for the 5th time ( not a conducive scenario)
- 200 day EMA and green line of support around 1031-1040 levels
For me this does not give confidence to go long on this stock at current price.
From a short term trading perspective a Bear Call Spread strategy may be considered.
Example of a Bear Call Spread Strategy
Sell ICICI Bank 27 June 2024 expiry 1150 Call currently around 20
Buy ICICI Bank 27 June 2024 expiry 1180 Call currently around 11.4
Net receivables 700* 8.5 = Rs 6020
Margin required around 48K
Potential Profit Margin 12.5%
Loss Protection for a rise in stock price up to 1168.6
For me Ideal levels to buy the stock from a longer term perspective where Risk::Reward ratio would look favorable 990-933 odd levels.
Follow risk management and consult your Financial Advisor before taking any action.
Take care & safe trading...!!!
Observations
- We are looking at daily chart of ICICI Bank
- 5 day EMA and 21 day EMA at 1117 & 1119 respectively
- red line of resistance around 1133-1137 odd levels
- stock is near blue line of support for the 5th time ( not a conducive scenario)
- 200 day EMA and green line of support around 1031-1040 levels
For me this does not give confidence to go long on this stock at current price.
From a short term trading perspective a Bear Call Spread strategy may be considered.
Example of a Bear Call Spread Strategy
Sell ICICI Bank 27 June 2024 expiry 1150 Call currently around 20
Buy ICICI Bank 27 June 2024 expiry 1180 Call currently around 11.4
Net receivables 700* 8.5 = Rs 6020
Margin required around 48K
Potential Profit Margin 12.5%
Loss Protection for a rise in stock price up to 1168.6
For me Ideal levels to buy the stock from a longer term perspective where Risk::Reward ratio would look favorable 990-933 odd levels.
Follow risk management and consult your Financial Advisor before taking any action.
Take care & safe trading...!!!
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