Reliance had an fantastic post result rally and stock moved up quite a bit. Since yesterdays session its looking weak with MA crossover on hourly charts. Call writers have piled up calls written for 1240/60/80 strike. It will face major hurdles in those levels. At the same time huge put writing noticed at 1200 levels. Upon correction stock may test 38.6% retracement levels which stands at 1204.45. Further breakdown below 1200 stock may test 1191/1178 by expiry. Hence its good to be short in Reliance Jan Future or Reliance Feb 1200 can be written alternately.
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Trade closed: target reached
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Stock reached the target of 1204.45. Position closed.
Trade closed: target reached
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Today it made low of 1191 which was the target. Position closed with handful profits.