India Cements (₹205) has been moving in a range between ₹150 and ₹250 for quite some time. The stock finds an immediate resistance at ₹226 and support at ₹198. A close below the latter could weaken the stock to ₹185 and ₹165. On the other hand, a close above ₹226 will lift India Cements to ₹248. We expect the stock to move in a narrow range in the short term.

F&O pointers: India Cements March futures closed at ₹206 against the spot price of ₹205. The premium has narrowed down over a period, signalling unwinding of long positions. Open interests saw a marginal increase from 2.05 crore shares on March 11 to 2.17 crore shares on March 15, even as the price moved down from ₹235 to ₹196-level. Option trading indicates the stock could move in the range of ₹180-250.

Strategy: Traders can consider India Cements 215-strike call, which closed with a premium of ₹2.75. As the market lot is 2,900 shares per contract, this strategy will cost traders ₹7,975, which will be the maximum loss.

On the other hand, profit potentials are high if the stock rises swiftly. Initial stop-loss can be placed at ₹1.6, which can be shifted to ₹2.5 if the premium rises to ₹2.8. Traders can aim for an initial target of ₹3.2 and even aim for ₹3.5.

Follow-up: Despite adverse market conditions, Tech Mahindra remained flat last week and might have provided some profit opportunities (on futures). However, bull-call spread remained at-the-money. We advise traders to exit from this.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading