I have taken short positions on Indiabulls Real Estate at 65.50, HCL Tech at 636, GAIL at 348.10 and Hind Zinc at 134.80 in December futures. Please advise strategies – Kishore Ailani

Indiabulls Real Estate: The stock is ruling at crucial level. Indiabulls Real Estate finds immediate support at Rs 55 and resistance at Rs 72. A close above resistance has the potential to lift the stock towards Rs 84.

F&O pointers: Just 10 per cent of positions was rollover to December series. Options are not very active but indicates could hover around Rs 65.

Strategy: Hold your short position with a stop loss at Rs 72. Shift the stop loss to Rs 65, if it rules below that level for another day.

HCL Technologies: The long-term outlook remains positive for HCL Technologies, as long as it stays above Rs 520. It now finds support at Rs 584 and if it sustains the rally towards Rs 780. However, after a long rally, we expect the the stock see correction. A slip below support could weaken it to Rs 520.

F&O pointers: The HCL Tech futures witnessed a healthy 24 per cent rollover. It even added positions in November series. Options are not active.

Strategy: It is better to exit. If you can afford to take a risk, hold your short with your convenience stop loss.

GAIL India: The immediate outlook remains negative for GAIL India. It finds immediate Rs 358 and support at Rs 332. A close below Rs 332 will weaken the stock towards 308 and a close below this level will change the long-term outlook negative for GAIL India.

F&O pointers: The rollover to December series is just 11 per cent. Options are not active.

Strategy: Hold your short position with your entry level. If the stock dips below Rs 340, shift the stop loss to that level for an initial target of Rs 332.

Hindustan Zinc: The stock has been moving in a narrow range of Rs 155 and Rs 105. Immediate support and resistance are placed at Rs 122 and Rs 141 respectively. The stock is likely to move in the range. A close above Rs 146 will impart a fresh rally on the stock and a close below Rs 113 will change the long-term outlook negative.

F&O pointers: The Hindustan Zinc futures witnessed a rollover of 14 per cent. Options have not seen any activity.

Strategy: Hold your short position with a stop loss at your entry level. Shift the stop loss to Rs 130 if it closes below that level.

NOTE: The analysis and opinion expressed in this column are based on F&O data available at this point of time and on technical analysis based on past price movements. There is risk of loss in trading.

Feedback may be sent to blfuturesoptions@gmail.com

(This article was published on November 25, 2012)
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