I have futures of GVK Power & Infrastructure November shorted at Rs 12.20. Please advise for the near-term. - P Shemanth
GVK Power: The stock is likely to move in a narrow range. It finds immediate resistance at Rs 14.10 and support at Rs 11. A close below the support could take the stock to new low below Rs 9.6. A close above Rs 14.1 has the potential to lift the stock to Rs 17.2 and even to Rs 19.5. However, the long-term outlook remains negative for GVK Power and Infrastructure as long as it rules below Rs 46.
F&O pointers: Derivative trading on GVK Power gave little cues as trading in futures and options was muted.
Strategy: If you can afford, hold your short position with a stop-loss at Rs 13.2, which is a two-week high for the stock.
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.
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