I have Wipro and Laurus Labs futures. What is the outlook for these two stocks?
I’m assuming that you’re holding futures long on both stocks. Please note that it always helps if you can mention whether you hold long or short along with the execution price.
Wipro (₹365.3): The stock of Wipro looks weak. After consolidating in the ₹380-420 range between October last year and mid-March this year, it breached the support at ₹380 a couple of weeks ago. As the trend has been bearish since the beginning of 2022, the slip below ₹380 adds to the bearishness. Thus, the scrip could fall towards the nearest support at ₹340. Nevertheless, there is a chance for the stock to see a corrective rally to ₹380. So, hold the futures for now and exit when the underlying stock touches ₹380. But until then maintain a stop-loss at ₹340.
You can consider going short on futures when the stock touches ₹380 with a stop-loss at ₹390. Look for a target of ₹345. However, if the stock sees a daily close above ₹380, it can extend the rally. In such a case, you may consider going long as the price may go up to ₹400.
Laurus Labs (₹293): The stock of Laurus Labs has been in a steady downtrend since August. It started to decline from about ₹600 and is now currently hovering around ₹293. From here, the nearest support and resistance are at ₹270 and ₹340 respectively. As it stands, there are no signs of a bullish reversal and the probability of a fall to ₹270 is high. Therefore, exit the long futures now.
Since the price band of ₹250-270 is a good support, you may consider going long after the stock falls to this region. Even then, wait for a clear sign of bullish reversal before pulling the trigger.
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