On daily terms, the current prices spike after testing support at 7DMA, rallies well supported with bullish DMA crossover but no momentum confirmation.

The price upswings are going in rising wedge on weekly terms, the upside potential is restrained upto stiff resistance at 21.21 levels.

Southwards is also restrained at strong support at 20.12 levels, please observe current price behavior has been drifting in this range from last couple of weeks (refer weekly charts).

Both momentum indicators (RSI and Stochastic curves) are hovering in linear direction at overbought juncture which implies the indecisiveness but slightly bullish bias.

While MACD is also signalling the same but uptrend has to prolong with mild bullish sentiments upto 21.21 levels.

Trade tips:

At spot ref: 20.73 levels with range bounded trend keeping in consideration we would like to remain in the safe zone by achieving certain returns though shorting a strangle.

Overview: Slightly bearish in short term but sideways in the medium term.

Time frame: 7 to 10 days

The execution: Short 1W OTM put (1.5% strike difference referring lower cap) and short OTM call simultaneously of the same expiry (1% strike referring upper cap) (we reiterate, preferably short term for maturity is desired).

Moreover, the strategy could be counterproductive as the skews in 1w IVs favors OTM puts strikes.