The long term outlook for Tata Global  Beverages (Rs 313.75) remains positive as long as the stock rules above Rs 258. However,  In the short term, it may come under pressure.

The stock finds immediate resistance at Rs 321 and a close above that level could trigger a fresh rally in the stock. Tata Global finds immediate support at Rs 298 and the next one at Rs 272. We expect a correction in the stock before it pursues a fresh rally.

F&O Pointers: The Tata Global December counter  shed  open interests on Friday. About 5 per cent or 4.72 lakh shares unwounded in open interests on Friday. Ever since the stock hit a high level of Rs 325, it has shed open interests, signalling weakness ahead, as traders aren't willing to rollover their position.

Strategy: Traders could consider buying  305 put. They closed with a premium of Rs 5.15. As the market lot is 2700 shares per contract, traders may have to incur an initial outflow of Rs 13,905. This would be the maximum loss one can suffer in this strategy. The maximum loss will occur if the stock stays  above Rs 310.15.

However, profit potentials are high if Tata Global slips sharply in this series itself. A close below Rs 299.85, will turn the position positive.

We advice traders to exit the  position if the loss mounts to Rs 5,800 or at a profit of Rs 8,000.

Follow up:   Stop loss would have triggered on Glenmark positions

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