The outlook for the stock of Hindustan Unilever Limited (HUL) (₹2,480.80) remains positive. The stock finds immediate support at ₹2,334 and the next one at ₹2,111. As long as HUL remains above ₹1,955, the short-term outlook will remain positive. On the other hand, the stock finds immediate resistance at ₹2,536 and the major one at ₹2,651. A close above the latter will trigger a fresh rally.

F&O pointers: HUL witnessed a healthy rollover of 23 per cent to next month series, considering there is one more week left for expiry. The April futures closed at ₹2,497.45 and the March futures at ₹2,482.35 against the spot price of ₹2,480.80, a positive sign. Option trading indicates a potential move in the ₹2,400-2,600 range.

Strategy: Consider a calendar bull-call spread on HUL by selling 2400-March-CE and simultaneously buying the same strike of April month. These options closed with premiums of ₹90 and ₹127.15 respectively. As the market lot is 300 shares, this will cost traders ₹11,145, which will be the maximum loss one can suffer. That would happen if HUL closes at or below ₹2,400 by the end of April expiry.

On the other hand, profit potential is high if HUL rises sharply in the next series while remaining flat in the next four days. The break-even point is ₹2,437.15. Traders can hold the position for at least three weeks and review it later.

Follow-up: Stop-loss would have triggered on Godrej Properties. Traders could consider holding the RIL 2400-call recommended during the previous week.

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

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