Reliance Capital: Another brick in the wall

Rel Cap
CMP 600.25

The stock has seen a nice bounce from the lows of 523 to 605 so far

How ever We can also observe a Flag & Pole pattern

& this is a conitnuation pattern where

Weakness might come in if it goes below 584


Also from charts one can observe that 600-622 is an important zone to watch out for as it might act as resistance

Target zone in that case 568-558 initially where it will need further review

Stop a tad above 622

A safer strategy :

One may consider selling

Reliance Capital June series

Option Type: Call Option

Lot Size: 1500

Strike Price : 610

CMP: 14.50

Profit is limited to 14.50 points per lot but importantly it protects from losing money for rise up to 624.5 till expiry day. That's a protection of 24 points per lot and that's a good protection taking care of Stop loss level too...



Do review your trading plan and plan your trade accordingly


Take care & safe trading...!!!

Trade active:

Rel Capital strategy update

610 Call Option
CMP 13.70

Despite stock being up Rs 3 (naked futures would have resulted in loss of Rs 4500 per lot) selling 610 Call option is still yielding profit of Rs 1200 per lot

Take care & safe trading...!!!
Enjoy ur weekend

Trade closed manually:

Trade closed manually

We exit from Rel Capital 610 Call option at 18

Stock is up Rs 22 from 600 odd levels when we initiated the trade and is not giving signs of coming down... infact formed a double bottom at 618 in intra day... however the hit we take on 610 Call option is Rs 3.5 per lot much better than naked short position in futures where the hit would have been of Rs 22 per lot...

Take care & safe trading...!!!