Punj Lloyd: After remaining at the receiving end for quite some time and touching its 52-week low at Rs 58, the Punj Lloyd stock is showing signs of resilience. It finds a near-term resistance at Rs 76 and the next one at Rs 93 and has support at Rs 62.5.

One more conclusive close above Rs 68 could trigger fresh buying in the stock. This could take the stock towards Rs 92 and even to Rs 107.

F&O pointers: The Punj Lloyd futures (market lot: 2000) saw a fresh accumulation of open interest in April futures.

While it also witnessed a healthy rollover of 88 per cent, it was lower than the three-month average of 90 per cent.

However, trading in options suggest little upside for the stock, as both 70 and 75 calls witnessed huge accumulation. Puts weren't active enough to discern any view.

Strategy: Traders can consider going long on Punj Lloyd futures if the stock moves past Rs 68. In that event, traders can keep the stop loss at Rs 68 on a closing day basis (spot price). Traders can consider exiting from the stock at Rs 76. If the stock maintains momentum, traders can also consider holding the long by shifting the stop-loss to Rs 92. Traders with appetite to take risk could hold Punj Lloyd futures till expiry with a tight stop-loss at Rs 62.5.

Orchid Chemicals: The outlook for Orchid Chemicals remains neutral as the stock is moving in a narrow band between Rs 270 and Rs 340. Only a break from this level could set a clear trend for the stock. The immediate-term outlook remains positive, as the stock could touch the upper band of Rs 340.

A forceful close above Rs 340 could set the stock in a fresh round of bull rally that could help it pierce its all-time high level of about Rs 380. It finds an immediate support at Rs 307.

F&O pointers: The Orchid Chemicals futures (market lot: 2000) added fresh long on Friday. It also witnessed a healthy rollover of about 90 per cent. Options are not active.

However, cues from option trading indicate limited upside, as 320-strike and 340-strike calls witnessed heavy accumulation of open interests.

Strategy: Traders can consider going long in Orchid Chemical futures with a tight stop-loss at Rs 307.

Follow-up: Last week, we had advised traders to consider going long in Bharti Airtel and writing (selling) a 210 call on LIC Housing Finance. While the former moved in line with our expectations, the latter would have resulted in heavy losses, as the stock moved up sharply.

Feedback or queries (on positions) may be sent to >f&o@thehindu.co.in , >blfuturesoptions@gmail.com by Sunday noon. Replies will be published on Monday.

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