Please guide on Union Bank April futures bought at Rs 237 and Century May futures bought at Rs 292. - S.K. Kataria
Union Bank: The stock is ruling at crucial level. If Union Bank manages to sustain Rs 224, it can reach Rs 271. A close below Rs 205 will change the outlook negative for Union Bank of India. In that event, it can go up to Rs 163.
F&O pointers: The Union Bank April futures added 1.22 lakh shares in open interests on Thursday along with rise in price. However, it witnessed a muted rollover of just 10 per cent to next month series. Though options are not active, a little cue available indicates positive bias.
Strategy: Hold your long position with a stop-loss at Rs 224. It if it opens on positive note, then the shift the stop loss to your entry level.
Century Textiles: Though the long-term outlook remains negative for Century Textile as long as it stays below Rs 540, in the short-term it can rally. The stock finds immediate resistance at Rs 320 and support at Rs 273.
F&O Pointers: The counter witnessed a rollover of just nine per cent to next month series. Options are also not active.
Strategy: It is better to book profits, as it is one of the volatile stocks. However, if you are willing, hold your long position with a stop loss at Rs 296.
I am carrying short positions of Rcom April CE 75 at Rs 4 and ONGC May CE 330 at Rs 10.50 and United Spirits May 2050 CE at Rs 105. Please guide me
Reliance Communications: Despite the recent run-up, the long-term outlook remains negative for RCom. It finds immediate resistance at Rs 96 and support at Rs 78. The stock could face strong resistance on rally.
F&O pointers: The April futures added healthy open positions on Thursday. Besides, rollover to May series is also higher at 29 per cent. Option trading points a range of Rs 80-90
Strategy: As your RCom is a high beta counter, exit from your short call, which is already out-of-the money.
ONGC: The long-term outlook remains positive. Only a close below Rs 263 will negate the current bull trent. It finds immediate resistance at Rs 342 and the next one at Rs 359.
F&O pointers: Rollover of open interest to next month series is just nine per cent. Option trading indicates a positive bias.
Strategy: It is better to exit from your position. However, if you can afford, hold your position with a stop loss at Rs 18, as there is possibility of your position turning profit.
United Spirits: The long-term outlook remains positive for United Spirits as long as it stays above Rs 1,611. Since the open offer from Diageo Plc ends on April 26 - a day after the expiry of current month series - there is a higher chance of the stock cooling off after that.
It finds immediate support at Rs 1,898.
F&O pointers: The counter witnessed a healthy rollover of 46 per cent to next month series. Option trading indicates strong resistance for the stock going ahead.
Strategy: Hold on to your shot call position, as further rise from current level in the near-term appears rather remote.
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.
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