I have taken short positions on Karnataka Bank at Rs 163, Raymond at Rs 431.20, Sun TV at Rs 376.80 and United Spirits at Rs 2005.80 Kishore Ailani

Karnataka Bank: The stock faces resistance at Rs 187 and the next one at Rs 216. It finds immediate support at Rs 165 and a close below that level will weaken the stock to Rs 134.

F&O pointers: Karnataka Bank December futures added 75.8 lakh shares in open interest on Friday alone. Option indicates negative bias, as calls such as 170, 180, 190 and 200 strikes witnessed heavy accumulation in open interest positions. Option trading also indicates that 150 could act as a strong support level, as open interest is concentrated around that level.

Strategy: Better to exit. If you can afford, hold it with a stop-loss at Rs 187.

Raymond: After hitting year high, the stock appears to be losing momentum. It finds support at Rs 418 and resistance at Rs 463. A close below support has the potential to drag the stock towards Rs 354.

F&O pointers: It added fresh shorts on Friday. Futures saw an accumulation of 1.81 lakh shares. Options are not active.

Strategy: Hold your short position with a stop loss at Rs 463 and shift it to your entry level if it dips below that level.

Sun TV: The outlook remains positive for Sun TV. It finds support at Rs 366 and resistance at Rs 449.

F&O pointers: The Sun TV futures witnessed unwinding of long positions on Friday. It shed over 1.95 lakh shares in open interest. Options are not that active.

Strategy: Exit. If you can afford, hold your short position with a stop-loss at Rs 413.

United Spirits: The stock is ruling near its all-time high. The stock finds immediate resistance at Rs 2,150 and support at Rs 1,877. Open offer has been made at Rs 1,440 a share for the stock. It is likely to rule firm around the current level.

F&O pointers: Futures shed open interests, albeit very marginally. Option trading, however, indicates positive bias.

Strategy: Ideal to book profit. If you can afford hold your short position with a stop-loss at your entry level. If it moves below Rs 1,877, then shift the stop-loss to that level for a target of Rs 1,765.

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 December 2, 2012)
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