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The short-term outlook turned positive for Arvind (₹352) after last week strong recovery. The stock finds immediate resistance at ₹366. A close above this level will trigger a rally in the stock that could help Arvind register a new high. The stock finds immediate support at ₹329 and a close below ₹302 will alter the short-term positive outlook for Arvind.
F&O pointers: The contract added fresh long positions on Friday. From 10.44 lakh shares last week, Arvind January futures' open interest positions jumped to 58.08 lakh shares along with sharp rise in share price. Trading in option indicates that ₹330 will act as a strong support.
Strategy: Traders could consider an investment in Arvind instead of adopting a short-term trading call. Investors can consider rolling over the position for a year for a target of ₹523. Initial stop-loss can be placed at ₹302 and then shifted to ₹366 if the stock moves past that level on a strong note. Initial target is ₹420. As a hedge, traders could consider buying ₹300 put that closed at ₹1.50 on Friday.
Follow-up: Hold RPower put as recommended.
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