The outlook for Adani Ports and Special Economic Zone (₹212.7) remains negative. Only a close above ₹244 will change the outlook positive. The stock rules at a critical level. A conclusive close below ₹208 will trigger a fresh fall in Adani Ports. In that event, the stock could touch ₹185. It appears the stock could reach the support in the near term.

F&O pointers : Adani Ports February futures added 11.37 lakh shares in open interest on Friday, taking the open positions to 42.81 lakh shares. Option trading indicates that the stock could face resistance at ₹220 and the support at ₹200.

Strategy : Traders could consider bear-put spread on Adani Ports. This strategy is best suited for traders who wish to take minimum risk.

This can be initiated by buying the ₹210-strike put and simultaneously selling the ₹200-strike put.

They closed with a premium of ₹8.7 and ₹5 respectively. That means, one has to pay ₹3.7 a contract (or ₹5,920 as market lot is 1,600 per contract) to initiate this strategy.

The maximum loss one can incur in this strategy is the premium paid (i.e. ₹3.7/contract). For that to happen, Adani Ports should close at or above ₹210.

Maximum profit of ₹7.3 a contract (₹11,680) is possible if the stock of Adani Ports settles at or below ₹200.

We advise traders to hold on to the position till expiry or the loss mounts to about ₹3,500.

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