Tata Steel is in near term pressure
Range: Tata steel has high supply at 500 and strong support near 460 zone.
The breakdown below 460 will lead Tatasteel to 428 from where a sharp recovery is expected.
As of now, Tata steel is highly overbought because of recent run-up from 436 to 490 levels.
Keep eye on Tatasteel and buy close to 460 for swift rally.
However its a best and a risk free buy at 430.
Strategy: the 460 Put can be bought at 7.4 for a target of 10 to 12. (Lot size 500)
The 490 Call at 11.5 can be written off to gain 5500 profit by expiry.
Risk: For Call writing, risk is good results on 12th Nov. A production increase of greater than 3% will lift the stock to 485 with ease.
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