Reliance posted result on Friday after market. And as far as I know, price knows everything before the results. So lets analyse few data points based on Friday Close and next expected action points for the script.
From AVWAP view.
Attached is the daily chart of Reliance Since June'21. I have drawn One AVWAP from lows of 28/7/21 which is placed at Rs 2354, One from First day of this Oct Expiry placed at 2647 and One AVWAP from highest level on 19/10 placed at 2700.
Attached is the daily chart of Reliance Since June'21. I have drawn One AVWAP from lows of 28/7/21 which is placed at Rs 2354, One from First day of this Oct Expiry placed at 2647 and One AVWAP from highest level on 19/10 placed at 2700.
Now lets see the Hourly chart on a customised system also. Expect good downmove below 2600 and upmove above 2710. Zone between 2675-2710 is a NO TRADE ZONE FOR ME as per this set up.
Now let us go and see how the smart money is placed on Option Chain of Reliance
Reliance is at 2631 and hence 2640 is AMT strike. The straddle of 2640 is trading at Rs 53+ Rs 59 = 109, this gives a range of 2631-109 = 2522 and 2631+109 = 2740.
Reliance is at 2631 and hence 2640 is AMT strike. The straddle of 2640 is trading at Rs 53+ Rs 59 = 109, this gives a range of 2631-109 = 2522 and 2631+109 = 2740.
So smart money is expecting the Reliance to stay in range of 2522-2740 after result. This means anyone who has sold this ATM straddle will make money if it experies within this zone .
Now let us dig a bit deep :
Now let us dig a bit deep :
Reliance 2640 CE chart with AVWAP plotted on it from 1/10/21 says that anyone who sold this CE will be in pain once this CE crosses 64 and OI goes below 5LK.
Reliance 2640PE is already trading above AVWAP of 45 and once it crosses 75, then expect serious momentum in this PE on upside.
When we see ITM CE and ITM PE of reliance then i find those activity to be normal. There is some unwinding in both ITM CE/PE and it balances out.
Based on AVWAP and OI , dont expect much fireworks in reliance on Monday. Expect it to be in range and at max we may see +/- 2% by day end.
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