Shares of TVS Motor Company (₹723.7) rule at a crucial level. A conclusive close above ₹724 will arrest the current bearish outlook, while a close above ₹741 will change the outlook positive. The stock finds resistance at ₹757 and close above ₹776 will trigger a fresh rally on TVS Motor that can lift the stock to new highs.

On the other hand, the stock finds an immediate support at ₹688 and the major one at ₹649. A close below the latter level will trigger a fresh downside in the stock which can drag it towards ₹598. We expect the stock to sustain bull trend, going ahead.

F&O pointers: TVS Motor June futures closed at ₹724.45 — at a premium against the spot close of ₹723.70. TVS Motor has witnessed a steady build-up in open positions along with rise in underlying share price. In the last few days, open positions jumped from 2.04 lakh shares to 80.76 lakh shares when the share price moved from ₹678 to ₹727. Option trading indicates that the stock can move between ₹650 and ₹800.

Strategy: We advise traders to consider going long on TVS Motor futures while keeping the stop-loss at ₹710 for an initial target of ₹741. Stop-loss can be shifted to ₹723, if the contract moves above ₹730.

Traders with deep pockets can patiently aim for higher-target levels. That is, they can keep the stop-loss at ₹688 and aim for an initial target of ₹810. Stop-loss can be shifted to ₹757, once TVS Motor moves above ₹762.

Follow-up: Strategy on Adani Port would have triggered stop-losses.

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

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