Comments
The stock of Gail India rules at a crucial level. It finds an immediate support at ₹398 and the crucial one at ₹362. A conclusive close below the latter will alter the long-term positive outlook for Gail India. However, a close above ₹476 will reconfirm the positive outlook and could trigger a fresh rally in the stock.
F&O pointers: Gail India futures witnessed a roll-over of about 35 per cent in the April month series. Both the March futures (at ₹437.05) and the April futures (at ₹437.20) have closed in discount with respect to the spot price of ₹439.60 signalling existence of huge short positions. Option trading indicates that the stock can trade in a range between ₹430 and ₹470.
Strategy: Traders with a high-risk appetite and a medium-term perspective can consider going long on Gail (India) April futures with a stop-loss ₹362. If the futures open on a positive note and close above ₹445, shift the stop-loss to ₹398 initially and then eventually to ₹445 for an initial target of ₹512 and the eventual target of ₹560. The market lot for Gail India futures is 2,000 shares.
Alternatively, (risk-averse) traders can consider buying ₹450-April call on Gail India at ₹7.50. However, they are not active currently. Investors can exit the position if the premium dips to ₹3 or rises to ₹12.
Follow-up: Hold April L&T put option.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.