Positive outlook remains intact for M&M Financial

I bought 4 lots of Bank Nifty Jan 2014 11000 PA at Rs 168. Kindly advice. - G.Ganesa Thangadurai

Bank Nifty: The outlook remains neutral with negative bias. It finds immediate resistance at 11,390 and the next one at 11,440. A close above 11,882 will trigger a fresh rally and that could take Bank Nifty futures to new heights. On the other hand, the index finds immediate support at 10,920 and the next one at 10,255. A close below 9,915 will change the long-term outlook to negative.

F&O pointers: The future added fresh long positions. Option trading indicates a range of 11,000 to 11,500 points.

Strategy: Book profits in two of your positions and hold the rest with a stop-loss at your entry level.

I have bought one lot each of Tech Mahindra at Rs 1,868, Tata Global at Rs 161 and ITC at Rs 325. Kindly advice. - Sushil

Tech Mahindra: The long-term outlook remains positive for Tech Mahindra as long as it stays above Rs 1,550. If Tech Mahindra sustains above Rs 1,750, it has the potential to touch new high.

F&O pointers: The Tech Mahindra futures added fresh long positions. Options are not active. A little cue indicates that it will face a resistance at 1,900.

Strategy : If you can afford hold your position with a stop loss at Rs 1,750 and shift it to your entry level if Tech Mahindra moves past that level.

Tata Global: The long-term outlook remains positive for Tata Global Beverages as long as it stays above Rs 135. The stock is likely to move in a narrow range in the immediate term between Rs 170-130. A close above Rs 162 will trigger a fresh rally in that stock that could take the stock to new heights.

F&O pointers: Its futures shed four lakh shares in open interests on Friday, indicating traders are not willing to roll over their positions. Options are not that active.

Strategy: It is better to exit and re-enter once it takes a clear direction.

ITC: The stock finds immediate support at Rs 305 and resistance at Rs 345. The immediate outlook remains neutral with negative bias. A close below Rs 280 will change the medium-term outlook negative for ITC.

F&O pointers: Its futures over 11 lakh shares in open interests along with fall in share price on Friday, Options trading indicates a range of Rs 300-330.

Strategy: Better to exit. If you can afford hold your position with a stop-loss at Rs 305.

I am holding futures in UCO Bank at Rs 78, and PFC at Rs 160.4. What levels should I square up on Monday, or should I continue holding the positions? - Manu and Mantu Bhatia

UCO Bank: The stock is ruling at a crucial level. A close above Rs 102 will change the long-term outlook positive. Immediate resistance appears at Rs 87 and support at Rs 72. Current outlook remains neutral with positive bias.

F&O pointers: The futures shed four lakh shares in open interests despite ending on positive note on Friday. Options indicate Rs 80 as a crucial level.

Strategy: Hold your long position with a stop loss at Rs 72.

PFC: The long-term outlook will turn positive only if the stock closes above Rs 212. The stock is expected to move in a narrow range between Rs 175 and Rs 140.

F&O pointers: PFC futures added fresh short positions on Friday. Options are not active.

Strategy: Exit and re-enter once it takes a clear direction.

I have a long position of M&M Financial at Rs 323. Kindly advice - Kishore Ailani

M&M Financial: The long-term outlook remains positive for M&M Financial Services. Crucial support is placed at Rs 283 and as long it stays above the short-term outlook will remain positive.

F&O pointers: Derivative trading provides little cue.

Strategy: Hold your position with a trailing stop-loss.

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.

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