Reliance: Support Resistance and trading strategy

The Chart set up

The stock has been sideways for the last 8-9 months.
The stock has fallen approximately 9% from the top in the month of December so far.

Important levels on the downside which has the potential to provide support
S1 - 2467-2485
S2 - 2405-2420

Important levels on the upside which has the potential to act as resistance
R1 - 2565-2588
R2 - 2632-2680

My Trading strategy
Given the set up, my trading strategy for Reliance: Short Strangle strategy for January series

Sell January 2023 expiry
2640 Call option &
2400 Put option

Net incoming 52 points

Gain potential and understanding risk profile
Max profit potential of Rs 13700 per strategy lot, if Jan expiry day close is anywhere between 2400-2640
( roughly 12% ROI on margin requirement)

Loss in strategy, if Reliance closing is above 2692 or below 2348 on 25th Jan 2023.

My Risk Management levels

Review points for managing risk
2467 / 2420 on the downside
2580/ 2612 on the upside

These review points are based on support and resistance levels identified in chart analysis and accordingly trading strategy has been curated which should give ample time and scope to adjust / exit in case view of rangebound movement is getting invalidated.

Apart from these, I would be also monitoring Crude oil price movement.

Hope the analysis and explanation of trading strategy helps you plan and manage your trade.

Do let me know if you find the analysis and insights helpful.
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