K.S. Badri Narayanan
India Bulls Real Estate (Rs 154.85): The stock has been in downtrend for quite sometime now. The recent fall has further pushed it closer to its crucial support level. Though the stock has a critical resistance at Rs 182, only a close above Rs 248 would negate the downtrend. On the other hand, a close below Rs 147 can take it lower to Rs 102. There however is a strong possibility of a small bounce back from the support level.
India Bulls Real Estate futures (market lot 1300) saw a rollover of 11 per cent to the next month series. The stock futures witnessed a sharp spurt in open interest on Friday, despite it being the settlement week. This indicates the confidence of bears on the stock. Options are not that active on the counter.
Strategy: Traders can consider going short on India Bulls Real Estate March futures with a stop-loss at Rs 165. Traders should adjust the stop-loss progressively to protect their profits as the many budget pronouncements could trigger wild swings in the stock price. Those who can bear the risk for longer duration can hold it for more than a week.
SAIL (Rs 207.4)
The stock has been on a downtrend after reaching its peak at about Rs 255. Only a close above Rs 255 can change outlook for the stock. It now finds next support at Rs 188 and appears to be heading towards that level.
F&O pointers: It saw a rollover of 12 per cent to March month series. Accumulation of open position in options indicate the emergence of call writers, signalling downward bias for the stock.
Strategy: Consider going short on SAIL March futures with a stop-loss at Rs 219.
Follow-up: Last week we had advised traders to go short on Tata Power futures with a stop-loss at Rs 1,285.
Though it would have provided handsome profit opportunities, the counter did not touch our targeted level of Rs 1,160. Traders can consider holding it for one more week with adjusted stop-loss at Rs 1,250.
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