I bought one Future of Infosys at Rs 2,605 and 2,550 put at Rs 70. What stategey should I adopt now - Vijay

Infosys: We expect the Infosys stock to move in a narrow range of Rs 2,300-2,650 in the short-term and likely to move in a sideways direction. While The company’s Q2 results scheduled to be announced on Friday may trigger sharp swings but even that will be in the range mentioned above. Only a close above Rs 2,850 will change the long-term outlook positive for the stock. On the other hand, a close below Rs 2,250 will change its outlook negative.

F&O pointers: It added fresh short positions on Friday. The futures closed a tad lower with respect to the spot price. The 2,600 call and 2,300 put have highest number of open interest postions, signalling the broader range for the stock. However, with puts witnessing unwinding of open positions, the chance of Infosys going downwards looks bright.

Strategy: You will make losses if Infosys settles between 2,605 and 2,550 or closes below Rs 2,550, where the maximum loss could be Rs 125 (a contract). Your position will turn positive only if the stock closes above Rs 2,675. It is better to exit your positions with marginal loss.

I have bought HDIL at Rs 106.15. Can I expect Rs 115 in short-term, as huge build up of open interests in CE of 110 & 115 - Hardik K

HDIL: The long-term outlook remains negative for Housing Development and Infrastructure (HDIL) as long as it stays below Rs 144. After the recent gains, the stock may correct a bit. While the immediate resistance appears at Rs 119, it finds support at Rs 97 and the crucial one at Rs 85.

F&O pointers: It added fresh long positions on Friday. Option trading indicates positive bias, though Rs 115 will act as a resistance. Huge build up of open positions in 100 put and 110 call indicates the range for HDIL.

Strategy: Hold your long position with a stop loss at your entry level.

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

Feedback may be sent to blfuturesoptions@gmail.com

(This article was published on October 7, 2012)
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