I am long on Apollo Tyres 90 call at Rs 3.20 and short 95 call at Re 1. Please advice -A.K. Tewary, Allahabad

Apollo Tyres: After hitting an all-time high at Rs 102.5 in September last, the stock has been in consolidation mode. It is likely to continue the narrow movement between Rs 102 and Rs 78.

F&O pointers : The counter added fresh short positions on Friday. Option trading indicates Rs 90 as support level.

Strategy: The position will yield profit only a sharp move from current levels. Risk-reward ratio is not in your favour as the maximum profit in this strategy works out Rs 1.80 and the loss would be Rs 2.2. So it is better to exit.

I am carrying short call positions of Tech Mahindra 1120 at Rs 24, TCS 1500 at Rs 25 and HCL Tech 760 at Rs 15 . Please advise - Kishore Ailani

Tech Mahindra: The outlook remains positive for Tech Mahindra. The stock finds resistance at Rs 1,133 and support at 1,010, which is slightly far away from current levels. The stock could see some pressure in the short-term.

F&O pointers : The Tech Mahindra futures witnessed unwinding of long positions on Friday, despite decent gains by the underlying. Options are not that active. A little cue suggests positive bias.

Strategy : It is better to exit, as your position is already in negative.

TCS : The long-term outlook remains positive for TCS. Only a close below Rs 1,420 will change the short-term outlook negative.

F&O pointers : TCS futures witnessed profit taking. Option trading indicates positive bias.

Strategy: It is better to exit. Since your deep out-of-the money, consider holding it with a stop loss at Rs 103.

HCL Tech: The outlook remains positive. Immediate support is placed at Rs 673, which is quite far off from current level. However, if the correction happens then that could be swift, as the stock climbed up sharply. If the rally sustains, HCL Tech could reach Rs 865.

F&O pointers: Unwinding of open interest on Friday suggests profit taking. Option trading indicates a target of Rs 700.

Strategy : Hold your position with a stop-loss at Rs 32.

K.S. Badri Narayanan

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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