I have long position in IDFC Dec 190 call at Rs 1.25. It is marginally up now (now at 1.75). Will it go up to 3 this week? Please advise - Vishal Singh Chandel

IDFC: While the medium-term outlook turned positive for IDFC, its long-term outlook remains negative as long as it stays below Rs 205. The immediate resistance appears at Rs 185 and support at Rs 168. A close below the support will drag the stock to Rs 149.

F&O pointers: Close to 11 lakh shares have been closed in the futures on Friday. Option trading, however, indicates a positive bias as calls shed open position.

Strategy: It is better to exit with profit, as time value will hurt your position.

I have taken short positions Cipla December futures at Rs 409.35, Century Textiles at Rs 433.20, HDFC at Rs 845.80 and Asian Paints at Rs 4,351. Kindly advise – Kishore Ailani

Cipla: The outlook remains positive for Cipla, as it is ruling in uncharted territory. Only a close below Rs 360 will change the outlook. The stock finds an immediate support at Rs 396.

F&O pointers: The Cipla December futures added fresh longs on Friday. Options are not that active.

Strategy: It is better to exit. If you can afford, hold it with a stop-loss at Rs 416 and shift to your entry level once it dips below that level.

Century Textiles: Despite the recent gains, the long-term outlook remains negative for Century Textile, as long as it stays below Rs 540. The stock finds immediate resistance at Rs 452 and support at Rs 395.

F&O pointers: The Century Textiles December futures added a few shares in open positions. Options are not active.

Strategy: Hold your short with a stop-loss at your entry level. Shift to Rs 395 if it dips below that level for a target of Rs 355.

HDFC: Though the long-term outlook remains positive as long as it stays above Rs 693, in the short-term the stock will face strong resistance. The stock finds immediate support at Rs 782 and a close below will drag to Rs 748.

F&O pointers: It added fresh shorts on Friday and option trading indicates Rs 800 as crucial level.

Strategy: Hold your short with a stop-loss at Rs 852 and shift it to your entry level once dips below that level.

Asian Paints: The long-term outlook remains positive. The stock finds support at Rs 3,850 and the next one at Rs 3,592.

F&O pointers: Both futures and options on Asian Paints only a little activity.

Strategy: It is better to book profits. If you are willing to hold, keep the stop-loss at your entry 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 December 9, 2012)
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