Jindal Steel & Power outlook remains negative

I had bought Jindal Steel & Power futures at Rs 298.30. Please advice stop-loss, resistance levels and its prospects. - Tarak Sinha

Jindal Steel & Power: Both the long-term as well as short-term outlook for Jindal Steel and Power remains negative despite hitting 52-week low. It finds immediate resistance at Rs 305 and if the current trend sustains, the stock can touch Rs 261, which is another major support level. Only a close above Rs 342 will change the medium-term outlook positive for Jindal Steel and Power.

F&O Pointers: It added over 3.5 lakh shares in open interest on Friday, signalling heavy short-build up. Options are not that active. However, a little cue available indicates a negative bias, as puts shed open interest. Option trading indicates Rs 270 is crucial level.

Strategy: It is better to exit from the counter. If you can afford to take a risk, hold your position with a stop-loss at Rs 261. You can also reduce your loss by selling 300 call, which involves higher margin commitments.

I have purchased one lot of Dish TV June futures at Rs 65. Kindly guide me.- Sushil Dogra

Dish TV: The outlook remains weak for Dish TV. One more conclusive close below Rs 62 will take Dish TV to its support level at Rs 59, which is very crucial level. It finds immediate resistance at Rs 69.5 and the next one at Rs 84.5.

F&O pointers : Dish TV futures witnessed unwinding of 3.24 lakh shares in open interest on Friday. This clearly signals that traders are not willing to carry over their positions. Options are not active.

Strategy: It is better to avoid Dish TV.

Note: The analysis and opinion expressed in this column are based on F&O date available at this point of time and on technical analysis based on past price movements. There is risk of lass in trading.

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