Comments
The outlook for GAIL India (₹355.7) is negative. The stock finds support at ₹329 and appears to be heading towards that level. A close below ₹312 will change the long-term outlook to negative. However, only a close above ₹386 will change the outlook to positive. In such a scenario, the stock has the potential to reach new peaks.
F&O pointers: GAIL India witnessed about 12 per cent rollover to July series. Heavy build-up in put options, in comparison to calls, signals that the stock may face strong resistance for an upmove.
Strategy: Traders can consider shorting GAIL India, with a stop-loss at ₹369. The stop-loss can be shifted to ₹363 and then to ₹351. The target for the stock is ₹329. We advice traders to exit at this level, as GAIL India may stage a sharp bounce back from this level. As the market lot is 2,000 shares per contract, this strategy is for traders who can withstand wild swings. Alternatively, traders can consider buying ₹350-put of July month, closed with a premium of ₹7.60. Consider exiting if the option premium rises to ₹12 or falls to ₹3.
Follow-up: Hold MCX long positions, as suggested last week.
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.