Possible trades from the set up
1. Aggressive traders may consider shorting the stock/ on any up move towards 433-435 levels, keeping a stop loss at 436.2.
2. Those willing to risk about 7000 to 8000 and wait for approximately 40 days may consider buying the 420 PE July series, currently priced at 15.75 (closing price as on June 11). If the trade materialises the option should be worth around 24 near final target . Square off the option at market if the price closes above the stop loss mentioned in .
3. Those who wish to carry overnight position and look to hedge can short the July intraday when the spot price is near 433-435 range and hold the position as long as the spot price do not breach the stop loss mentioned. If the trade is in our favor, towards closing buy 430 CE July series and convert the intraday position to overnight. This can offer some hedge and also will allow you to carry the trade overnight with a small margin.
I am not a SEBI registered analyst
The information given is only for educational purposes.
2. Target given for PE done
Lets wait for confirmation. For the pattern to complete it must break and sustain below the neckline. If the pattern gets completed the downside targets as mentioned in the analysis are possible. The right shoulder seem to be in tact as of now, if it is taken out convincingly on the upside, then the immediate targets on the upside can be 443/456/468.
Having said this the stock is in a strong uptrend both technically and fundamentally in the higher time frames. Even a 10 to 15 percent downward move would not alter the longer term perspective, which remain extremely bullish
Yes many times.. In that it forms a triple bottom and then we need to change the view accordingly