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Hindustan Unilever (Rs 388): After having a dream run last year, Hindustan Unilever appears to be heading towards some resistance. It now faces a strong resistance at Rs 413 and has a support at Rs 375. A close above the resistance zone could take it to new heights. In that case, the stock can go up to Rs 475-480 levels, according to Fibonacci projections.
However, if Hindustan Unilever closes below Rs 375, then the outlook will turn negative. In that event, the stock can touch Rs 329. We expect the stock to head towards its support level in the short-term.
F&O pointers: The counter witnessed a rollover of 37 per cent to the February series. It appears that most of the rollovers were on the short side. Options are not that active. Though only three days are left for expiry (of Jan series), February series in the option segment witnessed very low activity.
Strategy: Traders can go short on Hindustan Unilever February futures keeping the stop-loss at Rs 395.
This strategy is for traders with a high appetite for risk.
United Phosphorus (Rs 141): Despite a marginal pull back rally in the last few days, the outlook remains negative for United Phosphorus. The stock finds an immediate resistance at Rs 152 and a close above that will lift the stock towards Rs 175. On the other hand, United Phosphorus finds support at Rs 128 and a close below that will drag it towards Rs 100. Chances of the stock breaching support seem higher.
F&O pointers: It witnessed a rollover of 43 per cent to the February series. February series saw an accumulation of open interest on the long sides. Options are not active.
Strategy: Traders can go short on United Phosphorus February futures with a stop-loss at Rs 152 for an initial target of Rs 128. If the stock opens on a negative note, the stop-loss can be shifted to Rs 141.
Follow-up: Last week, we recommended traders to consider a long on JSW Ispat Steel and a short on Indraprastha Gas. Though JSW Ispat opened last week on expected lines, it could not sustain the gains. On the other hand, Indraprastha Gas is behaving on expected lines. Traders can hold the short position with a revised stop-loss of Rs 327.
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.
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