Comments
I have call options of Shree Renuka Sugars 30 at Rs 2.7; Ranbaxy 460 at 13; and Sintex Industries at Rs 3.5. Please advice – Satya
Shree Renuka Sugars (Rs 28.75): The outlook remains negative for Shree Renuka Sugars.
Only a close above Rs 54 will negate the current negative outlook. The stock finds an immediate resistance at Rs 32 and the next one at Rs 38. Renuka Sugar is currently ruling at support level. A conclusive close below from current level, will take Renuka Sugars to Rs 23, where it finds a major support.
F&O pointers: The futures added fresh short positions on Friday. Option trading indicates a negative bias as 30, 32.5 and 35 calls witnessed heavy accumulation of open interest. This signals the emergence of call writers. On the other hand, 25 and 30 puts saw unwinding of open position, signalling squaring-off by put writers.
Strategy: Exit.
Ranbaxy (Rs 419): The long-term outlook remains negative for Ranbaxy. The stock is ruling near support level. A close below Rs 415 will drag the stock to Rs 392 even Rs 355. Ranbaxy finds resistances at Rs 445 and at Rs 495.
F&O pointers: The stock witnessed unwinding of open interest along with fall in share price. This indicates that most traders, who went long on the stock, preferred to book losses expecting a further fall.
Activity was mostly centered around call options. Cues available from option trading indicate a negative bias.
Strategy: Exit on any small bounce back.
Sintex Industries (Rs 93.5): The outlook remains weak for the stock. It finds resistances at Rs 115 and a conclusive close above will lift Sintex to Rs 144. On the other hand, a fall below Rs 91 will weaken it further towards Rs 78.
F&O pointers: It saw unwinding of open position on Friday along with fall in share price. Options are not active.
Strategy: Exit if you get a chance, as liquidity is very low.
Shall I hold or sell Polaris Dec futures bought at Rs 134? Please advice - APV Prasaad
Polaris Software (Rs 128): The outlook for the stock is neutral. It is likely to move in a range of Rs 145-110.
Only a break from that level will set a clear trend for the stock.
It finds an immediate support at Rs 122 and a close below will drag to Rs 115. On the higher side, it finds resistances at Rs 133 and at Rs 145.
F&O pointers: The Polaris Software futures witnessed a marginal shedding of open interest. Options are not active.
Strategy: Hold your long with a stop loss at Rs 122.
I have sold M & M Dec futures @ Rs 705.5. Pl advice- Kiran K. Shah
Mahindra & Mahindra (Rs 708): The stock has been under tremendous pressure of late. M&M now finds support at Rs 665 and resistances at Rs 735 and at Rs 797
. It appears the stock is heading towards support level.
F&O pointers: The M&M futures added fresh shorts on Friday.
Option trading indicates that it could hover around Rs 700.
Strategy: If you can afford, hold your short position with a stop loss at Rs 735.
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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