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What are the best strategies to be adopted on the following positions: Sesa Goa bought at Rs 261; Reliance Industries at Rs 985; and Bank Nifty at 10765? – Mr Rajagopalan Vijay
Sesa Goa : The stock is ruling at a crucial level. A close below Rs 261 could trigger a fresh slide for the stock. In that event, Sesa Goa finds important support at Rs 243 and Rs 219. On the other hand, if it manages to hold on to Rs 261 level, it faces an immediate resistance at Rs 277 and the next at Rs 301.
F&O pointers : Trading in futures and options presents a mixed view for Sesa Goa. The Sesa Goa futures added fresh long positions on Friday while option trading signalled a negative bias.
Strategy : Exit. If you are willing to take a risk hold your position with a tight stop loss at Rs 258 (Spot price on a closing day basis).
Reliance Industries : The stock moved down sharply on Friday – this is a typical of long-term sideways move of this scrip between Rs 850 and Rs 1,150. The stock finds the immediate-term resistance and support at Rs 1,051 and Rs 973 respectively. A close below Rs 973 could drag the stock towards Rs 921 initially and then to Rs 888-890. It appears the stock is heading towards support zone.
F&O pointers: The Reliance futures saw unwinding of long positions on Friday. The option trading also indicates a negative bias as calls witnessed heavy accumulation of open interest and puts saw unwinding.
Strategy: Exit your position and re-enter once it takes a clear direction.
Bank Nifty : After a recent slump, the index has been moving in a range 11,150-11,050 during the last one month. The immediate term outlook, however, appears negative. The index finds a support at 10,250 and resistance at 10,931.
F&O pointers: The Bank Nifty futures saw unwinding of long positions on Friday. Option trading indicates downward bias as puts shed open positions.
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
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