ICICI Bank: Chart set up and trading strategy
ICICI Bank
We are looking at daily candlestick chart pattern
Observations
- ICICI Bank chart reflects it made a gravestone doji on September 15, 2022 (indicates previous buyers were happy to sell at 936 odd levels)
- subsequently we saw profit booking in the stock
- now the stock is back at 920-940 odd levels
- we see ICICI Bank still not making a decisive move above the September 15 high
View going forward
- so far as ICICI Bank is below 945 odd levels we might see ICICI Bank rangebound
- support at 868 / 844
Given the set up one may consider a Bear Call Spread strategy in ICICI Bank
Sell 960 Call option currently around 12
Buy 1000 Call option currently around 4
Net receivables 8 points
Lot size 1375
Net profit potential Rs 11000 per strategy lot
Margin requirement - approximately 93500
Yield Potential - 11.75% approximately
Review point for me: If ICICI Bank closing is above 943.
It gives ample scope to adjust / exit in case stock moves otherwise. Pls follow your Risk management measures.
Take care & safe trading...!!!
Like and follow for more trading ideas like these
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
We are looking at daily candlestick chart pattern
Observations
- ICICI Bank chart reflects it made a gravestone doji on September 15, 2022 (indicates previous buyers were happy to sell at 936 odd levels)
- subsequently we saw profit booking in the stock
- now the stock is back at 920-940 odd levels
- we see ICICI Bank still not making a decisive move above the September 15 high
View going forward
- so far as ICICI Bank is below 945 odd levels we might see ICICI Bank rangebound
- support at 868 / 844
Given the set up one may consider a Bear Call Spread strategy in ICICI Bank
Sell 960 Call option currently around 12
Buy 1000 Call option currently around 4
Net receivables 8 points
Lot size 1375
Net profit potential Rs 11000 per strategy lot
Margin requirement - approximately 93500
Yield Potential - 11.75% approximately
Review point for me: If ICICI Bank closing is above 943.
It gives ample scope to adjust / exit in case stock moves otherwise. Pls follow your Risk management measures.
Take care & safe trading...!!!
Like and follow for more trading ideas like these
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
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