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The stock of Tata Global Beverages (₹157.75) rules at crucial level. Another conclusive close above ₹157 will ensure sustainability of the bullish trend. Resistance is at ₹169 and support is at ₹140.5. Only a close below ₹124 will change the short-term outlook to negative. However, it appears the stock is set to scale a new peak.
F&O pointers: Despite a sharp gain on Friday, Tata Global Beverage futures shed 20.07 lakh shares (6.7 per cent) in open interest. This signals that traders prefer to book profits rather than roll over their positions. Trading in option indicates that the stock could move in the ₹150-₹160 range.
Strategy: Go long on Tata Global Beverages futures with a stop loss at ₹152 for the target of ₹169. High-risk investors can even consider rolling over the position with a target of ₹236.
Low-risk appetite traders can consider buying ₹162.50-call that closed with a premium of ₹2.70. This will entail an initial outflow of ₹12,150, as market lot is 4,500 shares/contract. Exit the position if the premium rises to ₹6 or dips to ₹0.75.
Follow-up: The stock of GMR Infrastructure might have given a huge shock to traders as it swung wildly. If anyone holds, continue to do so, as the stock has bounced back.
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