Oulook remains positive for Sesa Goa

Guide me on Hexaware (entered at Rs 70) and Bata India (at Rs 434 ) – Pankaj Dhawan

Hexaware: After rising sharply, the stock has been facing strong resistance at Rs 72. Only a close above could take the stock to Rs 82 and even to Rs 97. The crucial supports are Rs 60 and 54 while 64 could act as minor support.

F&O pointers : The Hexaware futures witnessed unwinding of long position. Options are not active to discern any view.

Strategy: It is better to exit from Hexaware and re-enter after it moves past Rs 72.

Bata India: This stock is ruling near its all-time level. It faces key support at Rs 389 and Rs 344. If the current trend sustains, Bata could touch Rs 508, according to Fibonacci projections.

F&O pointers: The stock witnesses unwinding of long positions while options are not active.

Strategy: If you are willing to take a risk, keep the stop loss at Rs 389 and hold. Otherwise exit.

Suggest suitable strategies on Bharti Airtel 360 call bought at Rs 3.5; Reliance Industries 1100 call written at Rs 7.5; and Wipro 460 put bought at Rs 7 – M.A. Samuel

Bharti Airtel: The medium-term outlook will be positive for the stock as long as it stays above Rs 328. It finds immediate resistance at Rs 365 and a crucial one at Rs 415. The immediate support appears at Rs 347.

F&O pointers : Despite marginal gains, Bharti Airtel futures also witnessed unwinding of long positions. Unwinding in 360 call and heavy accumulation in 380 call indicates that it could move in this range.

Strategy : Hold your position, which has already generated handsome profits, with a stop loss at Rs 5.

Reliance Industries : The stock has been moving in a narrow range for over a year. The stock finds crucial resistance at Rs 1,041 and the next at Rs 1,088 while the support is at Rs 1,001 and at Rs 978.

F&O pointers: The Reliance futures added fresh shorts on Friday. Option trading indicates negative bias as calls added open interest while put shed.

Strategy: Hold.

Wipro: The stock finds immediate resistance at Rs 473, breaching which it could go up to Rs 489. On the other hand, a close below Rs 445 – its immediate support – could drag it to Rs 417.

F&O pointers: The Wipro futures saw a marginal accumulation of short position. Option trading indicates a narrow range for Wipro as both calls and puts added open interest.

Strategy: Hold your position keeping the stop loss at your entry level.

Provide the strategy for Sesa Goa; entered at Rs 317 and Lanco Infratech at Rs 45 – Vijay R.

Sesa Goa: The stock finds crucial support at Rs 289 and the next at Rs 262. A close above Rs 331 could lift it to Rs 360. The immediate outlook appears positive.

F&O pointers: The counter witnessed unwinding of long position, signalling profit taking. Option trading indicates a neutral view as both puts and calls added open position.

Strategy : If you can afford to take a risk, hold your position with a tight stop loss at Rs 292 (spot price on a closing day basis).

Lanco Infra: After recent gains, the stock witnessed some resistance. Lanco Infra finds crucial resistance at Rs 53 and the next at Rs 62. A close below Rs 42 could weaken it to Rs 38.

F&O Pointers : The Lanco Infra futures witnessed unwinding of long positions. Option trading provides little cue.

Strategy: If you are wiling to take a risk, hold your position with a stop loss at Rs 42 (spot price on a closing day basis).

I shorted HDIL at Rs 170 one lot and again at Rs 182. Please advice - Krupa

HDIL: After a recent slump, the stock made a strong recovery. The medium term outlook remains positive for HDIL. It finds support at Rs 161, failing which it could go to Rs 139. On the other hand, a close above Rs 189, could lift the stock to Rs 204.

F&O pointers: The stock witnessed unwinding of long position on Friday, signalling profit taking. Option trading signals negative view as put cut the open interest.

Strategy : If you are willing to take a risk, hold your position with a stop loss at Rs 189.

Can we now sell Orchid Chemicals futures at Rs 307, with the stop hitting the stop-loss as indicated in last week's column ?

The triggering of stop-loss does not mean that the outlook would change negative. As indicated, the stock is moving in a range and it could set a clear direction only when it breaks the 270-340 range.

Strategy : It is better to enter the counter once it takes a clear direction.

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 ; >blfuturesoptions@gmail.com

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