IndusInd Bank (Rs 401): Though the long-term outlook remains positive for IndusInd Bank, in the short-term, the stock could see some pressure. It finds immediate support at Rs 367 and resistance at Rs 413. However, a close below Rs 345 will change the long-term outlook to negative. A close above Rs 425 will trigger a rally in the stock. In that event, it can reach Rs 528, surpassing its previous high of Rs 448 it touched in recent times.
F&O pointers: IndusInd Bank futures witnessed an accumulation of short positions on Friday. Options are not that active. Rollover of open interest is also very low at 66 per cent against about 72 per cent on the previous occasions. This clearly indicates that traders are not willing to bet on the counter.
Strategy: Traders could consider going short on IndusInd Bank. Stop-loss can be placed at Rs 413 for a target of Rs 367. Stop-loss can be shifted to Rs 397, if the stock dips below that level.
Traders could also consider selling 420 call option that closed at Rs 6. While this will entail a total profit of Rs 6, 000, loss will mount if IndusInd Bank moves up above Rs 426. Besides trading charges, traders have to bear margin commitments too.
K.S. Badri Narayanan