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The short and medium-term outlook is positive for Multi Commodity Exchange (MCX) of India ( ₹1,112.15). The stock is expected to continue its bullish trend. Supports are at ₹1,070 and at ₹1,030. Resistances are at ₹1,196 and at ₹1,140.
F&O pointers: The MCX June futures witnessed unwinding of open positions, despite the underlying stock gaining over 3 per cent.
This signals profit bookings by traders, as the stock had a sharp run-up in recent times. Options are not very active. Little cues available indicate positive bias, as call writers wound up their positions.
Strategy: Traders can buy the MCX futures contract with an initial target of ₹1,140. Stoploss can be placed at ₹1,090 initially and should be shifted to ₹1,122 once the stock moves past that level.
Long-term investors who have strong risk appetite and can withstand wild swings, can even consider rolling over the positions for a few months with a target of ₹1,252.
Risk averse investors can consider buying 1,100-call that had closed at ₹26.45. As the market lot is 500 shares, one has to fork out ₹13,225.
Traders can consider exiting the position if the investment value dips to ₹7,500 or rises to ₹20,000.
Follow-up: Hold the put position of ONGC.
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