I have purchased three lots (6000) of SAIL 130 call option at Rs 1.50. Highlight the SAIL position the by end of this expiry month . — C.K.M Raju

SAIL : The outlook remains negative for SAIL. The immediate resistance and support appear at Rs 131 and Rs 114. It appears SAIL is heading towards Rs 95, where it finds a crucial support. Only a close above Rs 170-175 would change the outlook positive for the stock.

F&O pointers: The SAIL August futures witnessed unwinding of long positions along with fall in share price. This indicates traders' disinterest and fear towards SAIL futures. Option trading also indicates a negative bias.

Strategy : Exit. If you are willing to take a risk, consider writing 120 call (Rs 2.30), which would minimise your loss. If the share price closes below 120 at the time of expiry your loss would be the difference between the call purchased and sold (about Rs 2.20). However, maximum loss occurs if SAIL ends between Rs 123 and Rs 130. If SAIL manages to close above Rs 132, your position would turn profitable, which is very unlikely to happen during the settlement.

Suggest strategy for short positions taken for August series on Indraprastha Gas at Rs 414, Gujarat Fluoro at Rs 355, TTK Prestige Rs 2,802 and for long position on GTL at Rs 73 . – Kishore

Indraprastha Gas: The outlook remains positive for Indraprastha Gas, which is ruling near all-time high levels. While immediate resistance appears at Rs 425, IGL finds immediate support at Rs 379 and the next at Rs 337. A sustained rally will take the stock to new territory; in that case it could touch Rs 485-490.

F&O pointers: The IGL August futures witnessed unwinding of open interest on Friday, despite the stock was moving up, suggesting traders turned cautious. Options are not active.

Strategy: Exit your short position. If you are willing to take a risk, hold it with a stop loss at Rs 425 (spot price on a closing day basis) for a target of Rs 379.

Gujarat Flourochem: The stock is also on the uptrend. It now finds resistance at Rs 482 and support at Rs 410. A close below the support could weaken the stock towards Rs 366. The stock could rise to Rs 567-75 if the rally sustains.

F&O pointers : The recent-entrant to F&O list added open interest along with rise in share price. Options are not active.

Strategy: Exit. If you can afford to take a risk, hold your position with a stop loss at Rs 482.

TTK Prestige : The stock is ruling at crucial juncture. It finds support at Rs 2,348 and the next at Rs 1,995. It finds a strong resistance at Rs 2,810 and only a close above that level will change the outlook positive for TTK. It appears after Friday's fall the stock has lost its momentum.

F&O pointers: It saw a marginal accumulation of open interest, indicating short build up. Options are not active.

Strategy: Hold your short position.

GTL : Despite the recent vertical fall, the outlook remains weak for GTL. We expect the stock to move in a wide range of Rs 46 and Rs 82.

F&O pointers : It shed open interest along with fall in share price. Options are not that active.

Strategy: Exit straight away.

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 ; >blfuturesoptions@gmail.com

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