I entered one long position on Nifty futures at 5020 and a short position on L&T futures at Rs 1,540. Is it advisable to hold these positions? — Partibane B

Nifty futures: The outlook for Nifty remains negative. It now finds support at 4763, and a close below that will weaken it sharply towards 4587 or even to 4354 levels.

On the other hand, it faces immediate resistance at 5017 and next one at 5204. The most crucial resistance appears at 5311.

F&O pointers: The Nifty futures witnessed a low rollover of about 19 per cent. Option trading points a downward bias for Nifty. Heavy accumulation of open interest in 4600 put signals that Nifty might find it difficult to dip below that level. On the other hand, calls from 4700 to 5300 have added open positions.

This indicates stiff resistance for Nifty in every uptick.

Strategy : Exit your long position and re-enter once the stock takes a clear direction. If you are willing to take a risk, consider holding your position with a stop loss at 4763 spot price on a closing day basis.

Larsen & Toubro: The outlook remains negative for Larsen & Toubro. The stock finds crucial support at Rs 1,407 and a close below that would drag it to Rs 1,365. L&T faces resistance at Rs 1,635-40 and the crucial one at Rs 1,780.

F&O pointers : L&T futures witnessed a rollover of about 27 per cent in open interests, most of which were on the short side. Option trading suggests negative bias.

Strategy: Consider holding it, If you can afford as the stop loss is at far away from current level.

Please suggest strategy for short positions taken on GMDC at 184, YES Bank at 299 & Ambuja Cement at 142.30? Should I rollover these positions or book profit or loss in September? – Kishore

GMDC: The stock is ruling at a crucial level. It now finds support at Rs 163 and the next one at Rs 146.

The resistances appear at Rs 190 and Rs 223. We expect the stock to show a downward bias.

F&O pointers : The counter saw a low rollover. Options are not active.

Strategy: Hold your short position with stop loss at your entry point.

YES Bank: This stock is also ruling at crucial level. It finds support at Rs 249 and a conclusive close below could weaken it to Rs 227 or even to Rs 193.

YES Bank faces resistance at Rs 296 and the next one at Rs 323.

We expect the stock to move in a narrow range with a downward bias.

F&O pointers : YES Bank witnessed rollover of 12 per cent in open interest to October series. Options are not that active. But a little cue available points a negative bias for YES Bank.

Strategy: Hold your short position with a stop los at Rs 273 for an initial target of Rs 249.

Ambuja Cements: The stock is likely to move in a narrow range. It now finds support at Rs 127-131 and resistance at Rs 155. A dip below support could drag Ambuja Cements to Rs 117-115.

F&O pointers : The counter witnessed a healthy rollover of 42 per cent in open interest. Options are not that active.

Strategy: Exit. Re-enter once it takes a clear direction.

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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