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The stock of Bharti Infratel (₹308) is ruling at a crucial level. The stock finds immediate resistance at ₹321. If it is able to close above that level conclusively, the medium-term outlook will turn positive and can take the Bharti Infratel stock to ₹404. On the other hand, the stock finds immediate support at ₹296 and a conclusive close below ₹280 will change the outlook to negative.
F&O pointers: Despite a decent gain on Friday, the counter did not see much accumulation in open interests. Trading in option indicates that the stock may see a strong resistance at ₹320 and support at ₹300.
Strategy: We advice traders to go long on Bharti Infratel futures with a stop loss at ₹296. If the stock opens on a strong note, shift the stop-loss to ₹312. Traders can book profit at ₹321. Alternatively, they can also consider buying ₹320-call on Bharti Infratel that closed at ₹5.15. With market lot being 1,600, total loss could be ₹8,240 — the total premium paid. We advice investors to exit if the loss mounts to ₹5,500 or at a profit of ₹8,500.
Follow-up: Hold on to DLF strategy as suggested last week.
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