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Go long on Titan futures
The long-term outlook for Titan Company (₹361) is positive. The stock has a strong support at ₹328 with an immediate resistance at ₹367. If it manages to conclusively breach this resistance, it can hit a target of ₹384. A close above ₹384 can take Titan to new highs above ₹448.
F&O pointer: Titan December futures shed 1.54 lakh shares in open interest on Friday, signalling profit taking. Options trading indicates positive bias, as call writers (sellers) prefer to exit from the contracts.
Strategy: Traders can consider going long on Titan futures if the underlying stock breaches ₹367. In that case, stop-loss can be pegged at ₹355 initially and then shifted to ₹375 levels. Traders can hold for an initial target of ₹384, while those with a high-risk appetite can even consider rolling over their positions for high returns. In the event of it breaching ₹384, Titan Company has the potential to touch ₹448. Risk-averse traders can consider buying ₹360-call that ended at₹7.95. Here, the maximum loss could be the premium paid(₹11,925). Traders can exit the position if the option premium declines to ₹4.2 (book a loss of ₹5,625) or a rally to ₹15 (can take a profit of ₹10,575).
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