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B. Venkatesh

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

The strategies are constructed to take advantage of small reversal in futures prices. These positions may run counter to the primary trend. Protective stops are, hence, important. If futures price gaps up (down) on Tuesday so as to trade 2-3 points above (below) the recommended entry price, traders should enter the position after the price breaks above (below) the 5-minute high (low).

Likewise, if the futures price gaps down (up) and then triggers the recommended entry level, the protective stop should be placed at day's low (high) at the time the position is initiated, if that price is lower (higher) than the stop-loss level recommended below.

Options-based strategies are not available on these positions because the price targets are not far away from the recommended entry levels.

ACC: Buy June futures after it trades above 370.50. The upside target is 372-375. Place the protective stop at 367. The open interest position is about 25 per cent of the market-wide limit. The minimum order size is 750 units.

ICICI Bank: Buy June futures after it trades above 377.50. The upside target is 380-382. Place the protective stop at 374. The open interest position is about 15 per cent of the market-wide limit. The minimum order size is 700 units.

GAIL: Buy June futures after it trades above 218. The upside target is 220-222. Place the protective stop at 215. The open interest position is about 25 per cent of the market-wide limit. The minimum order size is 1,500 units.

HLL: Sell June futures after it trades below 141. The downside target is 139-137. Place the protective stop at 143. The open interest position is about 25 per cent of the market-wide limit. The minimum order size is 2,000 units.

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

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