The market has begun to cool off after a nearly 7% rally from the low near the 98 level made in early january. As the bounce cools off and other base metals show signs of weakness, MCX Aluminium looks set for a correction if the 102 level breaks. A break through the 100 level could hasten the sell off leading to test of the january low and possibly even further.
Trade Idea – Buy MCX Aluminium Digital Put Options on a break of 102.00, all the way till 98.70. Buy MCX Digital Call Options on a break above 104.80. Valid till 19-02-2016