I have a short position on Jubilant Foodworks October futures at Rs 792. Please advise if I should exit, average out or wait? –Sarvesh Goel, Faridabad

Jubilant Foodworks: The stock made a strong recovery last week. It finds crucial resistance at Rs 892 and support at Rs 807. A close below the support could weaken the stock sharply towards Rs 711 and might even to Rs 594. However, if it sustains current trend, the stock could reach Rs 1,000.

F&O pointers: The stock shed open interest along with drop in share price on Friday. This indicates a negative bias. Options are not very active.

Strategy: If you can afford, hold your position with a stop loss at Rs 892. If it drops below Rs 807, shift the stop loss to that level. All prices mentioned here spot price on a closing day basis. Averaging concept never works in futures and options segment.

I am in short of Pantaloon Retail at Rs 205 for one lot. Please suggest a strategy. –Joshua, Nellore

Pantaloon Retail (Rs 197): The outlook remains weak for Pantaloon Retail. The stock finds resistance at Rs 207 and a crucial one at Rs 244. The support appears far away from current level at Rs 160 and at Rs 143 respectively.

F&O pointers: The Pantaloon Retail futures added fresh positions on Friday. Options are not active.

Strategy: Hold your short position with a stop loss at Rs 207, spot price on a closing day basis.

Please suggest a strategy for short positions taken for October series on BEML at Rs 517, Bharat Forge at Rs 286, IRB Infra at Rs 164.40 and GSPL at Rs 105.80 . – Kishore

BEML (Rs 514): Despite the recent recovery, the long-term outlook remains negative for BEML. BEML finds immediate resistance at Rs 593 and support at Rs 470. A close below Rs 470 could drag the stock to Rs 415. Only a conclusive close above Rs 685 would change the long-term outlook positive.

F&O pointers: The BEML futures added fresh short position on Friday. Options are not active.

Strategy: Exit, as the resistance is far from current level.

Bharat Forge (Rs 291): The stock is ruling at a crucial level. It finds immediate support at Rs 233 and the next one at Rs 218. On the other hand, resistance appears at Rs 303 and at Rs 338.

F&O pointers: The stock added long positions on Friday. Options did not see any activity.

Strategy: Exit your short position.

IRB Infra (170): The outlook remains neutral for IRB Infrastructure. The stock is likely to move in a narrow range of Rs 190-145 during the medium term.

F&O pointers: It accumulated fresh longs on Friday.

Strategy: If you can afford, hold your short position with a stop loss at Rs 195.

Gujarat State Petronet (Rs 102.5): The outlook remains neutral for GSPL. The stock is likely to move in a narrow range of Rs 115-85.

F&O pointers: It added fresh shorts on Friday Options are not that active to discern any view from it.

Strategy : Hold your short position with stop loss at Rs 115.

I have bought Tata Motors futures at Rs 178, sold DLF futures at Rs 234 and Reliance Industries futures at Rs 865. Please suggest a strategy. – Partibane B

Tata Motors (Rs 179): Despite sharp recovery, the outlook remains weak for Tata Motors. It now finds support at Rs 158 and the crucial one at Rs 141. Only a sustained rally could take the stock towards Rs 195. A close above that could lift Tata Motors to Rs 210.

F&O pointers: The stock added fresh longs on Friday. Option trading indicates a narrow movement as both puts and calls shed open position.

Strategy: Hold your position with a stop loss at entry level.

DLF (Rs 231): The stock is ruling at crucial level. It finds support at Rs 227 and the next one at Rs 208 and resistances at Rs 242 and Rs 257.

F&O pointers: The futures saw huge unwinding along with fall in share price, indicating a negative bias.

Strategy (Rs 869): Hold your short with a stop loss at Rs 242.

Reliance Industries: It made a smart turnaround. It now finds a resistance at Rs 879 and the next one at Rs 938 while support appears at Rs 799 and Rs 756. It appears that Reliance might lose some momentum.

F&O pointers: It accumulated fresh longs on Friday. Heavy addition of open interest in call and put indicates that it could swing wildly.

Strategy: Hold your short position with a stop loss at Rs 879.

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.

Feedback may be sent to >f&o@thehindu.co.in ; >blfuturesoptions@gmail.com

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