SBI reports earnings tomorrow.
The stock has seen a steady rise 2156 to 2370 ( May future values) in the past one month. That's almost 10 %.
Here's a profile chart of the may future :
The chart is a May composite of the Futures.
It shows a balance between 2156 and 2306 and a strong breakaway from this balance on the 15th of May which was a trend day.
2306 which is the base of those single prints and 2282 which is the POC and the lows of 15/ 05 are now the support zone for this instrument.
Anymove below 2282 is likely to bring 2222 and 2156/ 2148 lower down. The targets on a further breakdown below these points are approximately 2100.
Up ahead in the chart 2450 May F is first resistance and almost hit after the trend day. A move above 2450 is likely;y to bring 2600 immediately.
Today's profile seems to be developing inside yesterday and may not change the structure much into earnings tomorrow.
Here's the delta chart :
The top most pane is cumulative day delta , followed by volume and the past 10 days of cumulative delta in the pane below.
The price charts have a vwap band from the 15th which track the breakout from that day.
We can see longs built in the system on the 14th in anticipation of a breakout but they have booked at higher levels and the result is a market at vwap now or neutral post breakout.
This vwap level is 2265 for the rise from 15/ 05. There is a buildup of green shown around the vwap line which would mean short term buying interest.
Once can see upper and lower deviations from the mean price at 2422 and 2308 currently.
The 2350 strike in SBIN would now hold a premium at these two levels for the call and put as this is the minimum level to take out for a breakout.
A complex option strategy would be to write a 2350 straddle and but the next OTM call and put to safeguard a sharp move away from 2422 or 2308. But this is only recommended for highly experienced option traders who can be nimble on news flow.
The other option is to buy a 2300 put and a 2450 call and wait for a breakout. Highest OI is placed at 2500 call and 2200 put currently.