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B. Venkatesh

THE following strategies are based on Tuesday's trading in the derivatives segment on the NSE.

Nifty: Sell August futures if it trades below 2,349. The downside target is 2,342-2,336. Place the protective stop at 2,357.

The minimum order size is 100 units.

ONGC: Sell August futures if it trades below 947. The downside target is 943-937. Place the protective stop at 954.

The minimum order size is 300 units.

Reliance Industries: Sell August futures if it trades below 748. The downside target is 745-740. Place the protective stop at 754.

The minimum order size is 600 units.

i-Flex: Sell August futures if it trades below 897. The downside target is 889-877. Place the protective stop at 910.

The minimum order size is 300 units.

Note that all the above-mentioned positions are intra-day trades. If the futures price gaps down on Wednesday, to trade two to three points below the recommended entry price, traders should enter the short position after the price breaks below the 5-minute low.

If the futures price gaps up and then triggers the recommended entry level, the protective stop should be placed at the day's high at the time the position is initiated, if that price is higher than the stop-loss level recommended above.

Option-based strategies on these positions will not be optimal because the price targets are not far away from the recommended entry levels.

Position trade: Matrix Labs August futures closed at 188.60. Buy the August contract if it remains above 185. The upside target is 205-208. Initiate the position with protective stop at 182.

The margin on the futures position is approximately 20 per cent of the contract value. The minimum order size is 1,250 units.

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

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

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