Ranbaxy outlook remains positive

K.S. Badri Narayanan Updated - September 09, 2012 at 09:46 PM.

10bl10_Ranbaxy.eps

I have a long position of Hindalco at Rs 106.8 and Jindal Steel and Power at Rs 353. I am also holding a short position of Reliance infrastructure at Rs 456 and Punjab National Bank at Rs 688. Please suggest me the stop loss and resistance.- Partibane B

Hindalco (Rs 107.55): The overall outlook still remains negative for Hindalco despite a bounce back in the last few days. The immediate resistance appears at Rs 112 and only a conclusive close above Rs 156, will change the outlook positive. One more close below Rs 105 will drag the stock towards Rs 85.

F&O pointers: Despite small gains, the Hindalco futures witnessed unwinding of long positions. However, Sept 100 put witnessed heavy accumulation, indicating strong support at that level.

Strategy: If you can afford, hold your position with a stop loss at Rs 105.

Jindal Steel & Power (Rs 353): The outlook remains negative for Jindal Steel & Power. It finds immediate resistance at Rs 388 and the crucial one at Rs 469. It finds support at Rs 337 and a close below will trigger a fresh sell-off. This could take the stock towards Rs 270.

F&O pointers: Derivative trading suggests a negative bias.

Strategy: Exit. If you can afford, hold your long with a stop loss at Rs 337.

Reliance Infrastructure (Rs 454): The long-term outlook still remains weak for Reliance Infrastructure. Reliance Infra finds resistance at Rs 467 and the crucial one at Rs 565. It finds immediate support at Rs 430 and next one at Rs 390 is significant.

F&O pointers: Despite recent gains, it shed open positions, indicating that traders are not willing to rollover their positions. Option trading presents a neutral view.

Strategy: Hold your short with a stop loss at Rs 467. Shift the stop loss to your entry level if it closes below that level.

PNB (Rs 689): The medium-term outlook remains neutral with negative bias. It finds immediate resistance at Rs 735 and the next one at Rs 860. Crucial support appears at Rs 601 and a close below that will weaken PNB to Rs 490.

F&O pointers: The PNB futures witnessed unwinding of open position last week. Options are not that active.

Strategy: If you can afford, hold your short position with a stop loss at Rs 735.

Please advise a suitable strategy for the following positions: Bharti Airtel 240 call bought at Rs 12, and PFC 160 call bought at Rs 5.5. -Samuel M.A

Bharti Airtel (Rs 256): The long and short-term outlooks remain negative for Bharti Airtel. The immediate resistance appears at Rs 262 and the support at Rs 229. A close below Rs 229 will trigger fresh sell-off.

F&O pointers: The counter witnessed unwinding of long positions last week. Option signals strong resistance at Rs 260.

Strategy: Book profit and exit.

PFC (Rs 161): The outlook remains weak for Power Finance Corporation. It now finds support at Rs 148 and the next one at Rs 130. Key resistance is placed at Rs 172 and at Rs 189.

F&O pointers: Open interest witnessed a steady decline last week. Options are not that active.

Strategy: Exit your call.

I am holding Ranbaxy 580 Sept call bought at Rs 11.25. Please advise me on my next move. - Krishnan.

Ranbaxy (Rs 556): The outlook is positive for Ranbaxy. It finds immediate support at Rs 520 and if it sustains the current rally, it can go up to Rs 620. A close below Rs 520 could weaken Ranbaxy towards Rs 471.

F&O pointers: The Ranbaxy futures witnessed steady accumulation of open interest. Options are not that active.

Strategy: Hold your call with a stop loss at Rs 5.

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 >blfuturesoptions@gmail.com

Published on September 9, 2012 16:16