Havells India: The Havells India stock has recovered sharply in the last two months and is now placed at a crucial level.

A close above Rs 405 could trigger a fresh rally in the stock that could take it to a new high.

The stock finds support at Rs 352, with an immediate support at Rs 388. But if the stock manages to sustain above Rs 405, it could reach Rs 521, according to Fibonacci projections.

F&O pointers: The Havells India futures (market lot 500) witnessed accumulation of new long positions on Friday, despite weak market conditions.

The futures closed at a premium to the spot price. None of the options witnessed any trading.

Strategy: Traders can consider going long on Havells India futures only if it closes above Rs 405 (spot price) for one more day. While stop-loss could be placed at Rs 388, initial target could be Rs 445.

Traders with high-risk appetite can consider holding Havells India with a stop-loss at Rs 352, for a target of Rs 521.

Suzlon: The medium-term outlook remains neutral for Suzlon. The stock is likely to move in a range of Rs 45-58 in the medium term. Only a break from this range would set a clear direction for the stock.

After recovering sharply in the last few weeks, it turned weak on Friday. It appears the stock is heading towards Rs 50.

F&O pointers: The Suzlon futures (market lot 4,000) saw unwinding of long positions on Friday, indicating profit-booking. Besides, the futures is trading at a discount to the spot close, indicating accumulation of new shorts as well. However, option trading indicates a neutral view , as both call and puts shed open position.

Strategy: Traders can consider going short on Suzlon futures if the stock rules below Rs 54.

Then, they could keep the stop loss at Rs 54 and hold for an initial target of Rs 48.

This strategy however is for traders who are willing to take the risk.

Alternatively, traders can consider a short strangle on Suzlon Energy, using 55 call and 50 put.

The maximum profit in this strategy is the premium collected (about Re 1 a contract), while the loss could be unlimited if Suzlon moves wildly in one direction.

The maximum profit could happen only if the stock settles between Rs 50 and Rs 55 at the time of expiry. Writing options also involve margin commitments.

Follow-up: Last week, we had advised traders to consider short straddle on IFCI and a short on Indian Bank.

As mentioned last week, IFCI strategy is for longer duration. Though Indian Bank opened on a negative note, it recovered to move in a range.

Feedback or queries (on positions) may be sent to >f&o@thehindu.co.in , >blfuturesoptions@gmail.com by Sunday noon. Replies will be published on Monday.

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