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I sold ICICI Bank 1200 call at Rs 9.90 (April series). Is it better to hold or book profit? — Rajesh Agrawal
The stock finds crucial resistance at Rs 1,161 and immediate resistance at Rs 1,101. The major support appears at Rs 1,018. A break from this level could change the outlook negative for the stock. In that event, ICICI Bank could go to Rs 931 level. The stock is likely to move in a narrow range this week.
F&O pointers: The futures accumulated fresh short positions on Friday. The futures closed in premium with respect to the spot close of Rs 1,100.65. While calls added open interest, puts witnessed unwinding. This signals a negative bias.
Strategy: The premium of ICICI Bank 1200 call has already declined to Rs 3.3. It is better to book profits at current levels, as your position has only a little headroom.
What are the best strategies for the following April futures positions: Infosys futures purchased at Rs 3,002; and IDFC 160 call purchased at Rs 3.15? — Vijay
Infosys: Despite the sharp fall on Friday, the outlook appears to be neutral. The stock finds immediate resistance at Rs 3,023 and a crucial one at Rs 3,242. Rs 3,097 could act a minor resistance zone. The stock finds major support at Rs 2,758 and an immediate resistance at Rs 2,853. It may move in a narrow range of Rs 2,850 and Rs 3,050 with negative bias.
F&O pointers: The futures added heavy short positions on Friday. It closed in premium against the spot price of Rs 2,989.5. Option trading also indicates a negative bias as calls accumulated open interests even as puts shed. Unwinding of short position has the potential to lift the stock sharply.
Strategy: It is better to exit and re-enter once Infosys takes a clear direction.
IDFC: The stock is ruling at a crucial level. The stock needs to close above Rs 159-160 level once again. In that event it can go up to Rs 176, though Rs 163 could act as a minor resistance zone. If it fails to sustain 159 then IDFC has the potential to reach Rs 145.
F&O pointers: The futures witnessed a marginal accumulation of open interest on the short side. Option trading also skewed towards negative side.
Strategy: Your position is at-the-money. If you are willing to take a risk, hold your position for a day and see whether IDFC sustains at current level.
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
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