I have one lot each of SBI 2150 April call at Rs 51 and Reliance Capital 340 call at Rs 12.75. I have also purchased Nifty April 5700 call and sold Nifty April 5800 call. Kindly advice - Subhas Chandra Dasgupta

SBI (Rs 2,056): The outlook turned negative for SBI. It now finds immediate support at Rs 2,045 and a close below that will weaken SBI to Rs 1,840. Immediate resistance appears at Rs 2,175.

F&O pointers: Futures added fresh shorts. Option trading indciates a range of Rs 2,000 to Rs 2,200.

Strategy: It is better to exit.

Reliance Cap (Rs 310): Immediate resistance appears at Rs 327 while it faces support at Rs 354. The outlook remains negative for Reliance Capital.

F&O pointers: Option trading indicates a negative bias.

Strategy: It is better to exit with a loss.

Nifty: The outlook turned negative for Nifty. It faces resistance at 5,740, which is far off from current level. It finds crucial support at 5,404, a fall below which will confirm downtrend.

F&O pointers: The premium on Nifty futures has narrowed down to 18 points. Option trading indicates support at 5500.

Volatility index: The Nifty Volatility Index closed at 16.16, has been on the rise, which is pointing a negative outlook.

Strategy: You have not mentioned the price at which you have entered the options. Considering the closing price on Friday, your maximum loss would be Rs 20.2 and profit Rs 79.8. It is better to hold on to the strategy as risk-reward ratio is in your favour.

Guide me on positions of YES Bank, IndusInd Bank and HCL Technologies bought at Rs 431, Rs 405 and Rs 756 respectively. - C.K. Chandrasekar

YES Bank (Rs 428): After hitting all-time high at Rs 539, the outlook turned negative. It now appears the stock is heading towards major support zone at Rs 382. Immediate resistance appears at Rs 443.

F&O pointers: YES Bank futures accumulated fresh shorts on Friday. Option trading indicates Rs 420 is crucial.

Strategy: Exit. If you can afford, hold it with a stop loss at Rs 420.

IndusInd Bank (Rs 402): 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 365 and resistance at Rs 413-15.

F&O pointers: IndusInd Bank futures added over one lakh shares on Friday in open interest. Options are not that active.

Strategy: If you can afford, hold your long position with a stop-loss can be shifted to your entry level, if breaches that level.

HCL Tech (Rs 760): The long-term outlook remains positive for HCL Technologies, as long as it stays above Rs 520. It now finds support at Rs 728 and if it sustains the current rally it can breach the all-time high. However, a fall could be sharp and swift, given the sharp rise.

F&O pointers: Derivatives trading provides little cues though options indicate Rs 780 is crucial.

Strategy: Hold your long position with a stop loss at Rs 728.

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 April 7, 2013)
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