Rural Electrification Corporation (Rs 242): The long-term outlook will turn positive only if REC closes above Rs 305. In the short-term, it is likely to move in a narrow range between Rs 266 and Rs 214 with a downward bias. The stock finds immediate resistance at Rs 266 and support at Rs 233.
F&O pointers: The REC February futures shed open positions along with fall in share price. This indicates profit taking. Similarly, option trading also indicates a negative bias due to the strong emergence of call writers. A couple of put options witnessed unwinding of open interests too.
Follow-up: Last week, we advised traders to consider a short strangle strategy on HDIL, by selling 90 call and 65 put. The position is in the positive considering the opening and closing prices of HDIL option, As advised, traders can consider holding it for at least another week.
( Note: Feedback or queries (on positions) may be sent to >blfuturesoptions@gmail.com by Sunday noon. Replies will be published on Monday.)