What would be the future of Educomp? I have bought Aug futures at Rs 380. Is it better to hold or book losses? — Ajay Gambhir

Educomp Solutions: The outlook remains negative for the stock, despite the stock ruling around its 52-week-low level. It finds crucial support at Rs 359. A close below could weaken the stock sharply towards Rs 273. In finds an immediate resistance at Rs 41 and next one at Rs 456.

F&O pointers: The Educomp July and August futures closed in premium with respect to the spot close. It also witnessed a modest rollover of about 16 per cent. Options are not that active. However, a little cue available indicates that 380 could act as resistance, as 380-strike call witnessed accumulation of open position.

Strategy: Consider exiting from Educomp. If you are willing to take a risk, hold your position with a stop loss at Rs 359.

Please suggest strategies for the short positions taken two days back for August series on Bank of Baroda at Rs 896 and McLeod Russell at Rs 284. — Kishore

Bank of Baroda: The outlook remains positive for the counter. It finds an immediate support at Rs 865 and the next one at Rs 822. Bank of Baroda finds an immediate resistance at Rs 922 and the next one at Rs 960. The trend suggests that the stock is heading towards resistance.

F&O pointers: Both the July and August futures closed in premium against the spot price. It witnessed a healthy rollover of about 20 per cent. Options are not active.

Strategy: Exit your short position and consider re-entering at once it takes a clear negative trend.

McLeod Russell: The outlook remains positive for McLeod Russell despite the stock ruling near 52-week-high levels. It finds resistance at Rs 290. The stock could scale a new peak if it closes above Rs 290 conclusively. The immediate support appears at Rs 265 and the next one at Rs 251. Only a close below Rs 209 would change the outlook negative for McLeod Russell.

F&O pointers: This is one of the counters that witnessed heavy rollover of open interest to August series. The rollover of open position stood at about 45 per cent, most of which were on the long side, as both the current and the next month contracts closed in premium with respect to the spot close. Options are not active on McLeod Russell.

Strategy: Exit. If you can afford to take risk, hold your position with a tight stop loss at Rs 290.

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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