Comments
I hold Feb 2011 Sesa Goa futures purchased at Rs 331. What would be a good strategy? – Vijay R
Sesa Goa: The outlook remains neutral for Sesa Goa. The stock finds an immediate support at Rs 325 and a crucial one at Rs 295.
A close above Rs 331 would trigger a minor rally in the stock. In that event it can go up to Rs 345 or Rs 360, where Sesa Goa faces resistances. A conclusive close below Rs 295 would change the outlook to negative for Sesa Goa.
F&O pointers : The Sesa Goa Feb futures saw a marginal decline in open interest on Friday.
However, it closed in a premium with respect to the spot close of Rs 329.
Option trading indicates that Sesa Goa could move in the range of 320-340.
Strategy : Hold your position with a tight stop loss at Rs 325 (spot price on a closing day basis).
I bought Reliance Infrastructure Feb futures at Rs 725. Please suggest a strategy. – Bhanuteja
Reliance Infra: The outlook remains negative for Reliance Infrastructure. The stock faces resistance at Rs 805 and support at Rs 705. A close below Rs 705 could weaken the stock to Rs 637.
As long it stays below Rs 805, the outlook would remain negative.
F&O pointers: Despite a bounce back on Friday, Reliance Infrastructure Feb futures witnessed unwinding of long positions, indicating a lack of confidence on the counter.
Options are not that active. A little cues available in option trading indicates a negative bias.
Strategy: Exit from your position.
I have a long position in Everest Kanto Cylinders Feb futures at Rs 84. Is it advisable to hold? – R. Dhanasekaran
Everest Kanto Cylinders: The recent fall turned the outlook negative for the stock.
EKC now finds crucial support at Rs 78.5 and resistance at Rs 96.
A close below Rs 78.5 could take the stock towards Rs 65.
F&O pointers : The EKC futures closed on a par with the spot. It witnessed unwinding of long positions. This means heavy squaring-off positions, which helped the stock recover a bit on Friday. None of the options witnessed any activity.
Strategy: Exit from your position.
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
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.