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I have shorted 2 lots of Bank Nifty at 9,344 on January 20. What do you expect on Bank Nifty - Yogesh Kumar
Bank Nifty: A strong rally lifted Bank Nifty tantalisingly close to its crucial resistance level.
A close above 9,596 will change the outlook for Bank Nifty from negative to neutral. The Bank Nifty futures find support at 9,325 and the next one at 8,995.
A close above 9,757 will change the outlook positive for Bank Nifty futures.
F&O pointers: Bank Nifty futures witnessed a rollover of 31 per cent to February month series.
The value of February series is quoting in discount (backwardation) with respect to January, signalling that most of the rollovers were on the short side.
Option trading, however, indicates a positive bias, as 9,400 and 9,500 put witnessed higher accumulation of open interest.
Strategy: Hold your short position with a stop loss at 9,596, as any fall would be swift and severe.
I have shorted Feb futures of Welcorp at Rs 120. Kindly advise. - L. Lobo
Welcorp India (Rs 120.75): The stock is ruling at crucial level. It finds resistance at Rs 128 and support at Rs 109.
A close below the support could drag Welcorp to Rs 86.
However, as along it sustains Rs 118, the stock has the potential to reach Rs 141.
F&O pointers: It witnessed a rollover of about 20 per cent. Most of the rollover happened on Friday along with rise in share price.
Options are not active.
Strategy (Rs 121.35): If you can afford, hold your short position with a stop loss at Rs 128. If the stock closes below Rs 118, shift the stop-loss that level.
Kindly suggest strategy for short positions taken in January series: Welcorp at Rs 119.50 , IVRCL at Rs 43.40, Sterlite Tech at Rs 37.50 and Reliance Infrastructure at Rs 481.30 What would be ideal levels to exit? - Kishore Ailani
Welcorp India: Strategy as above.
IVRCL (Rs 44): The stock made a sharp recovery. It now finds resistance at Rs 49 and as long it holds above Rs 43.5, IVRCL has the potential to reach Rs 43.5.
However, if downswing happens, the fall could be sharp. It finds support at Rs 38 and the next one at Rs 29.
F&O pointers: It witnessed a rollover of 30 per cent, most of which were on the long side. Option trading indicates narrow range.
Strategy: If are willing to take a risk, hold your short position with a stop loss at Rs 49 and exit your entry level.
Sterlite Tech: The stock is also ruling at crucial level. It finds resistance at Rs 42 and as along it manages to hold on to Rs 38.5, it can reach Rs 56. However, a close below Rs 38.5 will drag it to Rs 33 and even to Rs 28.
F&O pointers: Rollover of open interest to next month series is just 17 per cent. No trading in options.
Strategy: Hold your short position with a stop loss at Rs 42.
Reliance Infrastructure (Rs 475): The outlook remains negative for Reliance Infra. Immediate support appears at Rs 467.
It now finds support at Rs 398 and the next one at Rs 346. Immediate resistance appears at Rs 467.
As long as Rs 455 is protected, it can reach Rs 580. Immediate resistance appears at Rs 505.
F&O pointers: It witnessed a rollover of 25 per cent to February series.
Option trading indicates a range of Rs 460-500.
Strategy: Hold your short position with a stop loss at Rs 505.
I have a short position of Hero Moto Corp at 1,907 for February series. Kindly let me know the outlook. - Sarvesh Goel
Hero Moto Corp (Rs 1932.8): The long-term outlook remains positive for Hero Moto Cor
p. It finds resistance at Rs 2,058 and the next one at Rs 2204.
On the other hand, it finds support at Rs 1,817, a close below which will change the outlook negative. In that event, it can even go to Rs 1,460.
F&O pointers: It saw a healthy rollover of 33 per cent. Option trading indicates 1900 would be tough to break.
Strategy: Exit.
I bought 2 lots Bata India Jan futures at Rs 604. Shall I hold or exit? - Prasaad APV
Bata India (Rs 588): The outlook remains neutral for Bata India. It finds support at Rs 538 and the next one at Rs 461. Resistances appear at Rs 628 and at Rs 686.
F&O pointers: Rollover is low at 14 per cent. Options are not that active.
Strategy: 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 @gmail.com
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