DLF Chart set up and my trading strategy

٢٥ يوليو

DLF

We are looking at daily charts of DLF

- the stock looks like trading in down trend channel since Apr 2024
- the stock is trading below both 21 day and 63 day EMA
- 21 day EMA is below 63 day EMA

- channel resistance around 840

Chart structure is looking weak

- likely support zone around 200 day EMA which is currently around 769


Given the set up and my view, my trading strategy

Sell DLF 29 Aug 2024 850 Call option currently around 19.5

Review point if DLF sustains above 842 on closing basis

In built protection for a rise up to 869.5 till 29 August 2024 (giving ample scope to adjust / exit with less damage in case view is wrong)

Max profit potential (Rs 16087) on Margin (Rs 126800 approx) : 12.5% approximately till Aug 2024 expiry

The strategy covers known risk and provides some cushion above those levels to some extent and provides decent ROI potential.

Do not follow me blindly.
Understand the implication of the strategy and learn to manage your risk

Take care & safe trading...!!!


Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- 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