I have a short position on Reliance Infra at Rs 590. What is the outlook . - Anubhav khandelwal
Reliance Infrastructure (Rs 643): Despite a sharp recent recovery, the long-term outlook still remains negative as long as the stock rules below Rs 795. However, in the short term the stock is likely to move in a range of Rs 670-570
The stock finds immediate resistance at Rs 667 and the next one at Rs 702. Reliance Infrastructure finds support at Rs 577 and a close below that will trigger a vertical fall. In that event, it can go up to Rs 464
Strategy: Hold your position with a stop loss at Rs 620 for an initial target of Rs 667 (spot price).
Guide me on Dena Bank 100 call, which I bought at Rs 2 – Mr Pankaj
Dena Bank (Rs 91): The outlook remains neutral for Dena Bank. It finds strong resistance at Rs 109 and support at Rs 76. Only a breaking of this range will set a clear trend for the stock. Immediately, it finds support at Rs 83 and resistance at Rs 93. The next resistance appears at Rs 102.
F&O pointers: The Dena Bank futures added fresh long positions. Options are not that active.
Strategy: If you can afford, hold your position till expiry. Mind that, your position will start yielding desired results only Dena Bank moves past Rs 100.
I have taken and Reliance Power 4 calls of 150. Eight Nifty 5300 puts on Friday, What strategy should I adopt?Madhu T
Reliance Power: The stock faces immediate resistance at Rs 135 and support at Rs 115-110. It is likely to move in a broad range of Rs 148-96.
F&O pointers : The stock added fresh short positions. Option trading indicates marginally negative bias.
Strategy : Exit
Nifty (5371): The index is ruling at crucial level. The spot Nifty finds immediate resistance at 5,440 and the next one at 5,525. If the index is able to sustain 5,290, then it has the potential to reach 5,875. Key support levels are placed at 5,205 and at 5,120. A close below 5,120 will change the outlook negative for Nifty and the fall could be swift and severe.
F&O pointers: The Nifty futures maintains healthy premium. Call options and select put options witnessed unwinding of positions. Accumulation in 5300 put suggests strong support for Nifty at this level. Fall in volatility index also augers well for Nifty.
Strategy: If you are willing to take a risk, hold your position with a stop loss at 5440 spot Nifty.
I have sold Nifty 5600 call (March) at Rs 70. Explain its prospects and a suitable strategy.Samuel M.A.
Strategy: Your position is already in the money. Consider holding your position till expiry as Nifty is unlikely to move past 5600 in this series itself.
Note: The analysis and opinion expressed in this column are based on F&O data available at this point of time and on technical analysis based on past price movements. There is risk of loss in trading.
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