Positive outlook for Sun Pharma

I am holding Sun Pharma 480 call bought at Rs 4.50. Please suggest a strategy. – M.A. Samuel

Sun Pharma (Rs 466.6): The outlook remains positive. The stock finds support at Rs 436 and resistance at Rs 484. A conclusive close above Rs 484, could lift the stock to new heights, breaching its all-time high of Rs 511.6.

Only a close below Rs 355 would change the long-term outlook to negative for Sun Pharma

F&O Pointers: The Sun Pharma futures shed open interest on Friday, despite postings strong gains. This indicates profit taking towards closing. Options are not active.

Strategy: Your position is already in-the-money. Hold your call with stop loss at your entry point.

Cut your position if Sun Pharma reaches Rs 484.

I entered Alstom Projects India May futures at Rs 630. What is the outlook and best strategy to be adopted? – K. Gopal

Alsom Projects (Rs 620): The outlook remains positive for the stock. It finds an immediate support at Rs 587 and the crucial one at Rs 530. Only a close below Rs 530 would change the long-term outlook negative.

The stock finds resistance at Rs 688 and the crucial one at Rs 784.

The stock could move in a narrow range with a positive bias for the short-term.

F&O pointers: The Alstom Power futures witnessed unwinding of long positions along with fall in prices.

Options are not active on Altsom.

Strategy : If you can afford, consider holding your position with a stop-loss at Rs 587, which is slightly far away from current position. Otherwise exit

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@thehindu.co.in

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