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I have sold two lots of 5000 put at Rs 275. What would be the Nifty position by the end of September expiry? – CKM Raju
Nifty (4750): The outlook remains negative for Nifty. It now finds crucial support at 4698, a dip below that level could weaken the index to 4361. The immediate resistance appears at 4864. Only a close above 5520 would change the outlook positive for Nifty.
F&O pointers: The Nifty futures witnessed a rollover of about 71 per cent to September series, which lower than three-month average rollovers. It saw heavy accumulation of short positions on Friday.
Even 4,000 strikes were active in the option segment. The fact that heavy accumulation in lower level strikes (from 4,700) of put indicates that Nifty could face strong support.
Strategy: Your position is marginally out-of-the money. It is better to exit. If you are willing to take a risk, you can hold your position with a Nifty stop loss at 4698.
I have purchased one lot of Hexaware futures at Rs 73.40 and one lot of 80-call option at Rs 5.70. Is it advisable to hold till expiry? - T.R. Kashyappan
Hexaware Technologies (Rs 68.5): The outlook remains negative for Hexaware. The stock finds crucial support at Rs 64-63 and resistance at Rs 75-76.
A close above resistance could lift the stock to Rs 84 and even to Rs 92. On the other hand, a close below support could weaken it to Rs 52.
F&O pointers: The Hexaware Sept futures witnessed unwinding of positions along with in fall price. Options are not active.
Strategy: Exit.
Please suggest strategy for long positions taken for September series on Educomp Solutions at Rs 229; Shree Renuka Sugars at Rs 60and Tulip Telecom at Rs 143.20. - Mr Kishore
Educomp Solutions (Rs 198): The stock is structurally in the bear grip. Only a close above Rs 268 would negate the current negative trend. If the current trend sustains, the stock could touch Rs 171.
F&O pointers: The Educomp futures witnessed unwinding of long positions. Options are not that active. A little cues derived from option trading indicates a narrow movement.
Strategy: It is better to exit from Hexaware.
Shree Renuka Sugars (Rs 54): The outlook remains negative for Shree Renuka Sugars.
The stock finds immediate resistance at Rs 56.2 and the support at Rs 49-47.
A close above resistance can lift it to Rs 66 even to Rs 73.
F&O pointers: The counter added fresh short positions on Friday. Options are not that active. However, higher accumulation in calls indicates a negative bias.
Strategy : If you can afford, hold your position with a tight stop loss at Rs 49. Otherwise exit.
Tulip Telecom (142): The stock is likely to move in a range between its support and resistance in the immediate term. Tulip finds support at Rs 138 and resistance at Rs 158. However, a fall below support could trigger a fresh fall. In that event the stock could go up at Rs 111.
F&O pointers: Tulip Telecom Sept futures saw a marginal accumulation of short positions on Friday. Options did not witness any trading.
Strategy: If you can afford, hold it with a tight stop loss at Rs 138.
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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