Reliance: Chart set up and trading strategyReliance
We are looking at Daily chart of Reliance Industries
Observations
- 2420-2450 has the potential to act as resistance
- One may also look at the Red Line of Resistance as potential supply zone
- 2180-2220 has the potential to provide support to the stock
- The Green Line of Support comes around 2163
Given the chart setup,
My view : Rangebound between 2220-2450
My trading strategy: Short strangle strategy for Mar 2023 series
Sell 29 Mar 2500 Call option &
Sell 29 Mar 2200 Put option
Understanding risk profile and reward potential
The strategy has a profit potential of approximately 14.5% till 29 Mar 2023 on Margin requirement and has in built loss protection
- for a fall up to 2142 on the downside and
- for a rise up to 2558 on the upside
Review points for me
2220 on the downside &
2450 /2485 on the upside
The review points should give ample scope to adjust / exit in case view is getting invalidated.
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
