Trading Strategy for Reliance Industries, SBI & Ashok Leyland

Hello everyone, and welcome back to another market breakdown! Those of you who tuned into my pre-market YouTube videos last week know it was a profitable ride—all those index expiries played out exactly as I predicted. Remember, folks—a winning streak like mine needs some love, so smash that subscription and notification bell on YouTube to stay ahead of the curve.

Today, we dive deep into Reliance Industries (NS:18367 | NS:RELI), State Bank of India (NS:18376 | NS:SBI), and Ashok Leyland (NS:18010 | NS:ASOK). Now, Reliance is perfect for an article breakdown, but SBI and Ashok Leyland's charts are a bit more intricate. That’s why I have saved those for a special YouTube video where I will share not just my analysis but also my equity and option trading strategies!

Now, let’s talk about Reliance Industries. Last week, the stock did a little hop, skip, and jump, leaving the financial media owned by Reliance in a frenzy. But hold on to your hats, because before you jump on the bandwagon, let’s take a closer look.
In my opinion, the recent rise is simply a dead cat bounce. Here’s why: as long as Reliance Industries remains below 1340, the bears remain firmly in control. Any upward motion at this point is just a temporary pullback due to the stock being oversold, as it fell from 1550 to 1200 pretty swiftly.

So, when can we officially declare Reliance “out of the woods”? Only if the stock reclaims the 1340 level with a strong bullish pattern. That’s when I will consider it to be back in neutral territory again.

So, how am I playing this? Well, I currently hold some very PE (put option) sells of 1280 and below. These are doing well, and I plan to ride them out with a profit stop to lock in 90% of those gains. My next move depends entirely on Reliances' behaviour at 1340. If it gets rejected, then I will sell call options (CEs) above 1350. If it breaks through, then put options (PEs) below 1320 are on the menu. This way, I can capitalise on the coming action regardless of the direction. Until then, my current position will keep rolling in the dough.

Overall, Reliance Industries has had a decent week, but it’s now approaching a make-or-break point. If it clears that hurdle, we could see a significant upswing. And trust me, you’ll be the first to know when that happens. This is because once we reach 1340, I will cover the stock on my YouTube channel so as to break down my next trade. Whilst also showing you how you can profit from it.

Lastly, do not forget to check out the video attached below for a detailed analysis of Reliance Industries, SBI, and Ashok Leyland - those are golden opportunities waiting to happen. See you there!

Youtube video link to the analysis of Reliance, SBI and Ashok Leyland - https://youtu.be/DRc6NxmgAPs