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B. Venkatesh

THE following strategies are based on Wednesday's trading in the derivatives segment on the NSE:

BoB: The April futures contract closed at 212.65. The outlook could turn positive if futures trade above 213.70. The upside target range is 225-228.

Buy April futures after the contract trades above 213.70. Initiate the position with protective stop at 205. Trail the stop to control the downside risk.

The margin on the futures position is approximately 22 per cent of the contract value. The minimum order size is 1,400 units.

The open interest position as a percentage of the market-wide limit is about 15 per cent.

No alternative strategies are available, as options on the stock are not actively traded.

OBC: The April futures contract closed at 303, down nearly 12 points over the previous day's close. The near-month contract could see a small reversal on Thursday.

Buy April futures if it trades above 301.50. The upside target range is 307-309. Initiate the position with protective stop at 296. The position has to be necessarily closed by end trade Thursday.

Note that the target is not far away from the recommended entry price. For this reason, setting up options-based strategies is not optimal.

(The opinion expressed in this column is based on technical analysis. There is risk of loss in trading.)

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