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The outlook for the stock of IndusInd Bank (₹1,932) is positive both for the short and medium term. As long as it remains above ₹1,795, the outlook will remain bullish. It finds an immediate support at ₹1,888. The stock rules at a critical level. However, a conclusive close below ₹1,847 will change the short-term outlook to negative.
F&O pointers: IndusInd Bank futures witnessed a modest rollover of 75 per cent to July series. Most of the rollover appears to be on the long side. The July futures trades at a discount, as the stock will turn ex-dividend (₹7.50) on July 18 . Trading in options indicates that the stock could move in the ₹1,900-2,000 range.
Strategy: Traders can go long on IndusInd Bank July futures. Stop-loss can be placed at ₹1,888 for an initial target of ₹1,980 for short-term traders and ₹2,350 for long-term investors. Stop-loss can be shifted to ₹1,948, if the stock closes above that level. Traders with a high-risk appetite can even consider rolling over the position for better returns.
They can also consider buying ₹1,950 July call option that closed at ₹37.80. While profit can be booked if the premium hits ₹58, traders can consider exiting from the position if the premium dips to ₹25. Market lot is 300 shares.
Follow-up: Traders can consider holding BHEL short position.
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