Negative bias seen for Opto Circuits

I am holding two lots of Opto Circuits August Series bought at Rs 151 and two lots of Indraprastha Gas (August series) bought at Rs 274. Kindly advise on medium term outlook. - M.A. Ravichandran

The outlook turned negative for Opto Cirucits as it fell through an important support at Rs 145. Now, only a close above Rs 156 will change the medium-term outlook positive for the stock. It now finds crucial support at Rs 107, a dip below which will trigger a fresh fall for the stock. Immediate resistance appears at Rs 132.

F&O pointers: Both August and September futures shed open interests on Friday, despite the stock closed on a firm note. This indicates that traders are not willing to rollover their position, and the recovery was mainly on short covering. However, the futures witnessed a rollover of 33 per cent. Options are not that active. A little cue available from option trading indicates a neutral view.

Strategy: Your position is at a huge loss. It is better to exit and re-enter once it takes a clear direction. However, if you can afford, hold your position with a stop loss at Rs 115 and shift it to Rs 127, if Opto Circuits able to close above that level.

Indraprastha Gas: After the steep fall in April, the stock has been in a consolidation mode. The immediate-term outlook remains positive, as long as it stays above Rs 230. In that event, IGL could reach Rs 324. However, a close below Rs 230 will change the outlook negative and trigger a fresh sell-off.

F&O pointers: Activity in derivates of Indraprastha Gas is low. It saw just a 10-per cent rollover to September series. Options are not active.

Strategy: If you can afford, rollover your position with a stop loss at Rs 255. Stop loss can be shifted to your entry level, if IGL sustains the rally.

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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