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Bharti Airtel: Last week's firm close turned the short-term outlook positive for Bharti Airtel. The stock is ruling at a crucial level now. One more conclusive close above Rs 342 could lift the stock towards Rs 365. But the overall outlook would remain negative as long as it stays below Rs 415-425. The immediate support appears at Rs 320-325, breaching it could weaken it to Rs 277. There is however a minor support zone at Rs 301-303.
F&O pointers: The Bharti Airtel futures saw fresh accumulation of open interest positions in April futures and a long rollover from March series. The rollover of open interest stood at 25 per cent. Option trading also indicates a positive bias as calls witnessed unwinding of open interest. On the other hand, puts saw heavy accumulation of open interest positions. However, option trading in April contracts for Bharti Airtel futures indicates a neutral view, as both calls and puts witnessed a marginal accumulation in open interest.
Strategy: Traders can consider going long on Bharti Airtel futures (market lot 1,000) only if the stock moves past Rs 342. In that event, traders can keep the stop loss at Rs 342 on a closing day basis (spot price). Exits can be made at Rs 352 or Rs 365, if momentum sustains.
LIC Housing Finance: The stock has been moving in a narrow range over the last one month. Only a break from the Rs 170-217 range could set a clear trend for the stock. LIC Housing Finance finds immediate support at Rs 190. The stock is likely to move in 190-210 range during the short term.
F&O pointers: LIC Housing Finance added fresh short positions on Friday. It also saw healthy rollover (27 per cent rollover in open interest). Option trading also indicates a neutral view with slightly tilted positive bias. Market lot is 1,250.
Strategy: Traders can consider writing LIC Housing Finance 210 call, which closed Friday at Rs 2.25. Note that in this strategy the maximum profit is the premium collected while the loss could be unlimited. The strategy, therefore, is for high-risk appetite traders only. Writing (selling) options also involves margin commitments.
Follow-up: Last week, we had advised traders to consider going short on CNX-IT and HDIL. Stop-loss would have got triggered for both the strategies.
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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