The short and long-term outlook appears bullish for GAIL (₹400) as long as the stock stays above ₹373. However, it could see higher volatility in the short term. The stock of GAIL finds resistance at ₹424 and a close above that level has the potential to lift the stock towards ₹467 and further to ₹484.
F&O pointers: The GAIL July futures witnessed a rollover of just 68 per cent as against the average three month rollover of 82 per cent. This suggests traders allowed short positions to expire. However, GAIL July futures shed open positions on Friday along with fall in share price, signalling a negative bias. Option trading indicates ₹400 is crucial level for GAIL.
On the other hand, traders can earn a maximum profit of ₹6.7 per contract, if GAIL manages to close above ₹410. Market lot is 1,000 shares per contract.
Follow-up: Traders could continue to hold both BHEL and Titan Company counters, recommended last week and the week before.