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K.S. Badri Narayanan

JP Associates (Rs 231): After hitting the key resistance at Rs 245, the JP Associates stock turned weak.

It now finds support at 210 and then at 190.

On the other hand, a move above 255 (on a closing day basis) has potential to lift the stock towards 275.

We feel that the stock’s down-trend can continue.

Signals from the derivative segment also point towards a downtrend.

On Friday, when the stock price fell considerably, it accumulated 21.27 lakh shares or 21 per cent in open interest.

Besides, puts at strikes 220 and 230 witnessed heavy unwinding while 240 and 230 calls saw a decent accumulation, indicating the emergence of call writers.

Consider going short on JP Associates futures (market lot 1125) if it dips below 225.

In that event the stop-loss could be 235 and should be adjusted progressively to protect profits.

Alternatively, traders can also consider buying JP Associates 225 put, which closed the week at Rs 5 on Friday.

Tech Mahindra (Rs 1,004): This stock is unable to move above the key resistance at 1,055 and can decline in the immediate term.

As long as it stays below 1,025, the chance of the stock hitting its support zone at 975 and 935 appears bright.

If Tech Mahindra manages to reverse the direction and move above 1055 (on a closing day basis), then it can go up to 1135.

This stock also accumulated 21.36 lakh shares when the stock fell about 4 per cent on Friday.

Options, however, are not active in the counter.

Traders can consider going short on Tech Mahindra futures, keeping the stop-loss at 1,025. Market lot is 600 shares per contract.

Last week, we had advised traders to go short in ICICI Bank and Sesa Goa. Both the counters hit their respective stop losses.

Feedback or queries (on positions) may be sent to f& o@thehindu.co.in.

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