What is the near-term target for Canara Bank and Development Credit Bank, which I entered at Rs 577 and Rs 63 respectively ? – Pankaj

Canara Bank: After registering a high at Rs 844 in November, the stock has been in the downtrend. It finds crucial support at Rs 549 and resistance at Rs 621, and the next at Rs 654. A fall below support could drag the stock to Rs 423. But the support may not break that easily.

F&O Pointers: May futures added fresh short position on Friday. It added over 1.5 lakh shares in open interest and closed at Rs 571.15 with respect to the spot price close of Rs 571. Options are not that active. The little cues provided by option trading indicates that 580 could act as a strong support, as 580 saw unwinding of open interest.

Strategy: It is better to exit. If you can afford to take a risk, hold your position with a tight stop loss at Rs 549 (which is far from current level) and hold.

DCB: The stock can move in a narrow range. Immediate resistance appears at Rs 64.75 and the support at Rs 59.65. While a close above Rs 64.75 could take the stock towards Rs 73, a fall be above Rs 59.65 could drag DCB to Rs 55. The outlook would no change as long as it stays above Rs 44.

F&O pointers: May futures added fresh positions on Friday. It added 10.68 lakh shares in open interest on Friday and closed at Rs 61.75 against the spot price of Rs 61.7. Option trading indicates a neutral view as 62.50 call and 60 put shed open interest.

Strategy: If you can afford to take risk hold your position with a stop loss at Rs 59.65 (spot price on a closing day basis).

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 >f&o@thehindu.co.in or blfuturesoptions@gmail.com

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