The short-term outlook turned negative for Asian Paints (₹3,197). The stock now finds an immediate support at ₹3,168 and the major one at ₹2,862. A close below the latter will change the medium-term outlook to negative

On the other hand, Asian Paints finds immediate resistance at ₹3,285. The major one is at ₹3,399 and a close above it will trigger a fresh rally. We expect Asian Paints to come under pressure in the short term.

F&O pointers: Asian Paints September futures closed at ₹3,205 against the spot price of ₹3,196.65. The counter witnessed steady accumulation of open interests. The premium of futures price signals existence of long positions. Option trading indicates that the stock could move in the ₹3,000-3,400 range.

Strategy: We advise traders to consider ₹3,200-strike put which closed at a premium of ₹45.70. As the market lot is 200 shares, this would cost ₹9,140 which would be the maximum loss. The position will remain negative if Asian Paints rules above ₹3,200.

However, profit potentials are high if the stock slides sharply within this expiry period. We advise traders to exit the position if the loss or profit hits ₹3,750.

The break-even point is ₹3,154.30 and a dip below that will turn the profits.

Follow up: The recommendation on ONGC would have provided profit opportunities. Traders can exit, as the position is still in-the-money.