DLF
DLF: Chart set up and trading strategy for January month expiryDLF
CMP 243
Observation
- level around 262 represents the Line of Resistance for DLF
Given the set up one may consider the following strategy
- Sell DLF 270 Call Option around 4.8
- Buy DLF 290 Call Option around 1.8
Lot size 3300
Max profit potential in the strategy Rs 9900/
ROI potential - 12.5% on Margin Capital requirement
In built loss protection for a rise in price up to 273 on 28 January 2021
Take care & safe trading...!!!
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
Stock Analysis of DLFPrice - 238.35 Dt. - 01-01-2021
The stock is in uptrend taking the support of the trendline. Price recently took support on the trendline on 22nd Dec. and continued uptrend. We have observed one thing that whenever price resume after taking the support of trendline, the volume is higher than 10 days average. Interestingly, the volume is higher than the last candle that took the support of trendline. We are expecting the stock to take the support of the trendline and move upward with the volume of more than 20M.
Price also takes the support of 35DEMA so instead of trendline the stock can go up to 35DEMA line.
DLFIn daily time frame it has made an Evening Star Doji with a negative RSI divergence. It faces resistance at 215 and support now comes in at 195-190. View negates above 222.
Evening Star Doji is formed in an UPTREND, 1st candle is bullish one , 2nd candles is a DOJI candle above the body of the previous candle and 3rd candle is a bearish one below the DOJI candle and closing below the midpoint of the 1st candle (bullish one )
Negative RSI Divergence happens in an UPTREND when the stock/index makes a higher high but the RSI fails to do so making a lower high and curls downwards.
DLF HEAD & SHOULDER 30MDLF is showing a head & shoulder pattern in 30min timeframe. It could be a good intraday trade in it breaks the neckline of the pattern. You can place your SL above the nearest swing high. Always keep your risk managed. Cut your losses quickly and ride your profits. Happy Trading!
[Short Term] Cup and Handle Breakout in DLF for Target 207+Since the last couple of trading session, DLF formed a cup and handle pattern which indicating a strong bullish move in DLF in next few trading session above 175. According to pattern depth of Cup is nearly 32 points so we can expect the same points in the projected target which can be 205-207.
Possible trade:
Buy DLF above 175
Stop-loss 169
Target - 190 200 207+
This trade can give good risk-reward as follow:
1) At First Target : 2.5:1(Reward: Risk)
2) At second Target: 4:1
3) At Final Target: 5:1
Disclaimer: Before taking any position make sure you're doing trade by risk management. Also, Don't forget to take advise from your financial adviser.