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indiamarketoutlook
Sep 13, 2021 3:53 AM

IRCTC: Chart set up and trading strategy Short

INDIAN RAIL TOUR CORP LTDNSE

Description

IRCTC
CMP 3355

- we observe supply increasing in IRCTC once stock goes above 3300

- 3270 / 3252 / 3238 are some important levels

- however if we see these levels being taken out probability of IRCTC testing the target zone would increase.

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Given the set up

One may consider to sell IRCTC Sept expiry 3500 Call option currently around 80

Yield potential is around 10% till expiry

In built loss protection for a rise up to 3580 till expiry

Look to exit if IRCTC closes above 3422

Take care & safe trading...!!!

Comment

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

Trade active



3500 Call is at 85

Trade is active

Order cancelled

The stock is currently under F&O ban period as it has reached 95% of Marketwise Open Interest position...
Comments
KrishanJainhsr
can we sell now 3500 call @200
indiamarketoutlook
@KrishanJainhsr, IRCTC needed to be below 3422 to signify weakness.

Yesterday IRCTC was in F&O ban period.

When any particular underlying asset (IRCTC in this case) goes in ban period means high stakes have been built up by bulls and bears. And it would come out of ban period only when we see liquidation of position. This liquidation usually would happen, when Stop loss of weaker party gets hit and they would be forced to exit their position.

In case of IRCTC, the up movement was strong when IRCTC went under F&O ban period... Today what we are seeing is possibly SL of bears getting triggered and they are being forced to buy at even higher levels.

Avoiding this stock for time being would be advisable.
KrishanJainhsr
@indiamarketoutlook, ok thanks for your quick response and support
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