United Spirits outlook remains negative

I have sold Tata Steel Jan futures at Rs 413. Please advise support, resistance levels and stop-loss . – S.M. Kerkar;

I have gone short on Tata Steel futures at Rs 394 Advise the outlook. - Sarvesh Goel

Tata Steel: Despite a sharp recovery last week, the outlook remains negative for Tata Steel. It finds immediate resistance at Rs 450 and the next one at Rs 520. Support appears at Rs 375 and at Rs 344.

F&O pointers: The counter added about 2 per cent in open interest, most of which came on Friday. Option trading indicates strong support at Rs 400.

Strategy: If you can afford it, hold your short positions with a stop loss at Rs 450, which is slightly far away from current level.

I have bought Nifty futures at 4905. Please advise support, resistance and strategy. –D.S. Patel

Nifty: The medium-term outlook still remains negative for Nifty futures. It finds resistance at 5027 while support appears at 4748 and 4687. If Nifty fails to sustain current rally, the fall would be sharp and severe.

F&O pointers: Open interest for the Nifty futures increased five per cent week-on-week. Most of the accumulation was on the long side. Option trading indicates strong support at 4800 and 4700.

Strategy: If you can afford a risk, hold your short position with a stop loss at 5027. Otherwise exit.

I had shorted Maruti at Rs 997, United Phosphorus at Rs 142.40, United Spirits at Rs 599.80 and bought Grasim at Rs 2,450. Kindly suggest a suitable strategy. — Roshan

Maruti Suzuki (Rs 981.5) : The outlook remains negative for Maruti Suzuki. The stock now finds support at Rs 929 and the next one at Rs 815. On the other hand, resistance appears at Rs 1,054.

F&O pointers: The counter witnessed fresh accumulation of short positions in Friday's trade. Options are not that active. However, a little cue available suggests negative bias.

Strategy : Hold your short position with a stop loss at your entry level.

United Phosphorus (Rs 138): The outlook remains negative. United Phosphorus finds immediate resistance at Rs 148 while support appears at Rs 128 and the next one at Rs 109.

F&O pointers: Fresh shorts were added in Friday's trade. Options did not see any activity.

Strategy: Hold your short position with a stop loss at your entry level.

United Spirits (Rs 598.3) : The outlook remains negative for United Spirits despite sharp gains on Friday. It finds support at Rs 535 and the next one at Rs 458. On the other hand, resistance appears at Rs 678 and next one at Rs 792.

F&O pointers: The counter witnessed unwinding of long positions on Friday even as it gained over three per cent. This suggests that traders preferred to book profits. Options are not active.

Strategy: If you can afford, hold your short position with a stop loss at Rs 678.

Grasim (Rs 2,493): The outlook remains positive for Grasim. It now finds resistance at Rs 2,546 and the next one at Rs 2,745. On the other hand, it finds support at Rs 2,327. Only a close below Rs 2,094 will change the current bullish outlook.

F&O pointers: It shed open positions on Friday, albeit marginally. Options are not active.

Strategy: Hold your long position with a stop loss at your entry level.

I have purchased Bank Nifty futures at 8950. Please advice – P.J Joshi

Bank Nifty (8981): Despite a strong rally last week, the outlook remains still negative only for Bank Nifty futures. Only a close above 9,596 will negate current negative outlook. Immediate support appears at 9059 and next at 9,596. Support appears at 8675 and at 8075.

F&O pointers: It saw fresh shorts on Friday. Option trading indicates 8900 is crucial.

Strategy: If you can afford hold your long position with a stop loss at 8675.

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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