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Please advise on an ITC 200 call sold at Re 1 and Chambal Fertilisers 80 call at 20 paise. - M.A.Samuel.
ITC : The stock is ruling at crucial juncture. After declining during the previous week, ITC made a strong recovery last week. However, the stock could face strong resistance at Rs 198; it finds an immediate support at Rs 182.
F&O pointers : The ITC futures witnessed a modest rollover of about 15 per cent to July series. Most of the rollovers were on the long side. Option trading also indicates a positive bias, as 190 put witnessed heavy accumulation of open interest, even as 200 and 190 calls saw a decline in open interest.
Strategy : Hold your position, despite June F&O points a positive bias, as the chance of the stock closing above Rs 200 appears slightly lower. The accumulation of open interest in July series indicates limited upside for ITC. However, if the stock opens on weaker note, close your position, as the premium of ITC 200 call would fall sharply.
Chambal Fert: The outlook appears negative for Chambal Fertilizers as long as it stays below Rs 85. It now finds an immediate support at Rs 74 and the crucial one at Rs 69. A close below the crucial support could drag the stock to Rs 54.
F&O pointers: The Chambal Fert futures saw a rollover of 13 per cent, most of which is on the long side. Heavy accumulation in July call options indicates a limited upside for Chambal Fert.
Strategy: Hold your position. If the stock opens on weak note, exit your position as it would turn in-the-money.
I have shorted Sun TV June futures at Rs 348. Can I rollover the position? – Satya
Sun TV: The outlook remains negative for Sun TV despite a sharp pullback in recently. The stock now finds a jet resistance at Rs 386 and an immediate support at 327. The stock finds a major support at Rs 308, a close below that could drag Sun TV towards Rs 266.
F&O pointers: The Sun TV futures saw a meagre rollover of just seven per cent. The Sun TV July future is ruling lower than (backwardation) the spot as well as June futures prices. This indicates accumulation of short positions in July series. While July options are not that active, trading in June options indicates a positive bias.
Strategy: If you can afford to hold with a stop loss at Rs 386 (spot price on a closing day basis), consider holding it.
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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