Please suggest strategies on Andhra Bank futures bought at Rs 111 and Hindalco futures at Rs 113. - G.B. Rajeswar Reddy.

Andhra Bank (Rs 108): The stock immediate resistance at Rs 115 and the crucial one at Rs 124. While immediate support appears at Rs 102 while crucial one is placed at Rs 92.

F&O pointers: The Andhra Bank Nov futures added fresh long positions. Options are not active.

Strategy: If you can afford hold your short with a stop loss at Rs 102 (Spot price on a closing day basis).

Hindalco: (Rs 119): The immediate resistance appears at Rs 125 and only a conclusive close above Rs 155, will change the outlook positive for Hindalco. Immediate support appears at Rs 113 and a crucial one at Rs 105.

F&O pointers: The Hindalco November futures saw a marginal accumulation of long positions. However, heavy accumulation of open interests both in 100 put and 120 call indicates a range-bound movement for Hindalco.

Strategy: Hold your position with a stop loss at Rs 113 (spot price on a closing day basis).

Please suggest a strategy to be adopted for GMR Infra futures bought at Rs 21.90. Y. Suneeta.

GMR Infra (Rs 20.5): If the stock sustains the current rally, it can reach Rs 25.5. It finds immediate support at Rs 19.5. A close below the support will trigger a fresh downfall for the stock.

F&O pointers: The GMR Nov futures witnessed unwinding of open position on Friday, indicating traders are not willing to roll over their positions. Options are not that active. A little cue available suggests resistance at Rs 22.5.

Strategy: Hold your long with a stop loss at Rs 19.5.

Can I go long in Punjab National Bank & Wipro at current levels? Dr G Jayakumar

Punjab National Bank (Rs 762): The stock finds resistance at Rs 835 and support at Rs 730. Only a break from this range will set a clear direction for the stock. As long as it stays above Rs 666, the long-term outlook remains positive for the stock.

F&O pointers: The PNB November futures added fresh longs on Friday. Option trading indicates Rs 740 is crucial level.

Strategy: Avoid the stock entering at current levels.

Wipro (Rs 367): The stock is facing strong resistance at Rs 385 and support at Rs 328. The long-term outlook remains positive as long as it stays above Rs 328. A close above Rs 440 will trigger a fresh rally in the stock. In that event it could set a new high.

F&O pointers: The counter witnessed unwinding of long positions on Friday, indicating traders are now willing to carry over the positions. Option trading indicates a negative bias towards Rs 340.

Strategy: Avoid.

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 November 4, 2012)
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