I need your suggestion and advice regarding MphasiS. The stock fell more than 25 per cent last week. What is the reason? Is it worth buying at this level in F&O; the margin is too high? I have bought one lot since the price fell. I want to buy another lot at 430 to cost average. Is it worth it? — V. Ravikeerthi

MphasiS (457): The stock's outlook looks negative despite the huge fall. After registering its 52-week low at Rs 421, the stock made a small bounce back. It finds crucial support at Rs 413, past which it can slide sharply. In that event, it finds supports at Rs 377 and at Rs 324. Only a close above Rs 584 would arrest the downtrend.

Please read the following link https://www.thehindubusinessline.com/markets/article1489262.ece for the reason behind for the fall.

F&O pointers: Mphasis futures added fresh short positions. It closed with a premium against the spot price close of Rs 453.7. Option trading also indicates negative bias, as calls accumulated open interest.

Strategy: I don't believe in cost-averaging concept even in the spot market. It is unlikely to work in F&O market. Hold your position, if you can afford to, with a tight stop loss at Rs 413.

What is the guidance on the current month's trend for Hexaware futures? — Pankaj

Hexaware: The outlook for Hexaware looks neutral. The stock is likely to move in a range of Rs 62-52. A close below Rs 52 may weaken the stock towards Rs 44 and a close above may lift it to Rs 84 level.

F&O pointers: Hexaware futures saw a moderate accumulation of open interest, most of which are on the long side. Options are not active in the counter.

Strategy: It is better to stay away from Hexaware. You can enter once it takes a clear direction.

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