Board Jet Airways

The outlook for Jet Airways (₹479) has turned positive. The stock now appears set to rise sharply in the near term. A conclusive close above ₹508 will change the medium-term outlook also to positive. In that event, the Jet Airways shares can rise to ₹640. While immediate support appears at ₹416, a close below ₹361 will change the outlook to negative for Jet Airways.

F&O pointers: The Jet Airways March contract on Friday added long positions. The addition of 10.62 lakh shares in open interests along with rise in share price indicates positive bias, as traders are carrying over their long positions. Trading in option indicates that the stock may face strong resistance at ₹500 and support at ₹400.

Strategy: Traders with a long-term view can bet on Jet Airways futures by going long. While the stop-loss can be paid at ₹455 initially, it can be revised to ₹466 if the stock sustains above current levels. Stop-loss can be shifted to ₹508 on a close above ₹508, for a target of ₹545 level.

Risk-averse traders can consider buying ₹480-call option that closed at ₹12.35. With market lot being 1,000 shares, one has to fork out ₹12,350 for this position. Exit the position if the position value rises to ₹22,000 or dips to ₹6,500.

Follow-up: Hold Bharti Infratel position.