Reliance Power (Rs 85): The stock price of Reliance Power has been moving in a range of Rs 75-135 since February. It is unlikely to break this range anytime soon. It finds an immediate resistance at Rs 96 and the next one at Rs 116. Support for Reliance Power is at Rs 78.
F&O pointers: The stock witnessed unwinding of long positions on Friday despite gaining 1.6 per cent. This indicates that traders may not be inclined to carry over their open positions. While options are not that active, the little cues that are available suggest that the stock price could hover around Rs 85 — that strike put shed open position.
While the immediate resistance appears at Rs 264, it finds support at Rs 187. The stock price appears to be heading towards the support. A close below the support could even drag BGR Energy to Rs 148.
F&O pointers: The BGR Energy December futures added fresh shorts on Friday. The futures closed at a premium with respect to the spot close of Rs 236. Options are not active.
Strategy: Traders can consider going short on BGR Energy, keeping the stop loss at Rs 264 for an initial target of Rs 187. Stop loss can be shifted to Rs 232 if the stock opens on a negative note and closes below that level on Monday.
Follow-up: We had recommended a short strangle on Bharti Airtel and a long on IDFC. Strategy on Bharti Airtel would have resulted in huge losses as the stock breached important support levels. While IDFC moved on expected lines initially, it changed direction in the later part of the week in line with the general movement of the market. Traders can consider holding the positions.
Feedback or queries (on positions) may be sent to f&o@thehindu.co.in,blfuturesoptions@gmail.com by Sunday noon. Replies will be published on Monday.