The outlook for the stock of Infosys (₹1,131.80) remains positive, as long as it rules above ₹1,020. Infosys finds an immediate support at ₹1,097 and the next one at ₹1,068. A decisive close below the second key support level can drag the stock towards ₹743. The stock finds an immediate resistance at ₹1,175 and a close above that will trigger a fresh rally that can lift the stock to new highs above ₹1,120.

F&O pointers : Infosys futures witnessed a healthy roll-over of 88 per cent to April series. The Infosys April futures closed at ₹1,136.85 against the spot price of ₹1,131.80, signalling a roll-over of long positions. Option trading indicates that the stock is likely to move in the ₹1,100- ₹1,200 band where concentration of open interest positions is strong.

Event : Infosys will announce its full-year and quarter ended March 2018 results on April 13. Besides, it will also give an outlook statement for next year. Given the volatile situation, investors would do well to go by the outlook for Infosys.

Strategy : We advise traders to consider buying Infosys ₹1,160-call, which closed at a premium of ₹25.20. As the market lot for Infosys contract is 600 shares, this will cost ₹15,120 for traders.

 

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A maximum loss of premium paid (₹15,120) will happen if Infosys fails to move past ₹1,185.20 at the time expiry.

However, profit potential is high if Infosys manages to climb sharply, particularly post results. We advise traders to hold the position at least till the end of third week of April contracts.

Traders could consider exiting the position if the premium dips to ₹7.50. The strategy is for traders who can withstand risk and volatility of market.

Follow-up : Hold Gail India position. As the stock adjusted to 1:3 bonus issue, the revised target is ₹412 and the stop-loss is ₹315.

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