Short Kotak Positional

Kotak bank had a good rally. Stock had moved almost 12.75% from nearest swing point low of 1210. However stock looking weak at top due to profit booking. RSI is crossing below 60 showing weakness. MACD is giving a bearish crossover on daily charts. Stock has been facing strong resistance at 1360-1365 levels which is acting as a supply zone. It would be good time to short Kotakbank with a target of 1305/1287/1269. Since market was bullish its advisable to take the trade through options.

-1x 25APR2019 FUTURES - ₹ 1336.5
-1x 25APR2019 1300PE - ₹ 19
+1x 25APR2019 1360CE - ₹ 25.45
-2x 25APR2019 1400CE - ₹ 13.35
Max. Profit ₹ +45,400
Breakevens 0-1356.7

Comment:

Disclaimer: Objective of this post is to educate and help all members earn profit from trading. I am not a SEBI registered analyst and strongly recommend people not to trade in NSE/BSE/MCX market basis above recommendations. All the stock picks are momentum picks chosen using technical indicators and for education purpose only. I am not responsible for profit and losses or SEBI audits arising out of the above calls. Stock market trading and investment is subject to market risks. Contact your financial advisor before taking trades or trade at your own risk.

Comment:

See the payoff chart using below link:
bit.ly/2K8jMK9

Comment:

KotakBank is already in 4.7k profit. its not falling as expected. Good to book profit and exit.

Trade closed manually:

Trade closed with 4.7k profit manually.