Expiry Special:- BN 27th Feb’20 BNTrading on Telegram:-
BN (Open 30279.95, High 30515.35, Low 30131.75, Close 30306.85):- Last 3-day’ s BN is in a downtrend channel.
Option data Analysis:- Max Pain is 30,400, MAX OI call at 30,500 (6,72,840) and MAX OI put at 30,000 (8,61,860), max CE writing has happened today at 30400 strike (addition od 2,64,040) and 2,07,740...
Stock tumbled from 310 level to 235 levels in the last 5 weeks.
Recently, it witnessed sharp bounce back from low around 235 by following a reversal double bottom pattern with volume. MACD also confirms the reversal.
Any fall could invite fresh buying in this stock. Expect the stock to expire above 230 level in Oct series. Lot size:2400
Trend is continued to be in consolidation phase between 310 and 400 levels. It wanders around 200 day EMA while MACD signals negative bias by staying below zero line. Expect it to stay below nearby resistance level of 370 till this expiry. As election result is on due, would like to adopt spread strategy. Lot size: 2667.
Trend continue to be negative as 50day EMA below 200day EMA. As well, MACD confirms the downtrend. Recent reversal from 200day EMA signals expiry would below 220.
By considering major event (Election Result) in the upcoming weeks, prefers to execute spread strategy rather using our regular naked strategy.
Recent crossover above 200-EMA and stay above resistance (plz refer the resistance line in chart) would bring back the positive momentum in the stock. As well, MACD reiterates the same. Expect the stock would find it closing above 320 level for Jan expiry.
Outlook: Bearish. Trend is bearish as It continue to stay below 200-day EMA. As well, MACD signals bearishness by heading below zero. Expect this series would be below 72. Suggest to write 75 call @ 0.55.
As price continue to stay below short term downward trend line and close below 50-day EMA with bearish engulfing would keep the trend under bearish territory. Expect Nov series would expiry below 720 and would fetch return of more than 20%p.a post expenses includes brokerage and tax.