Should I go long on Hindalco & CNX-IT futures at current levels – Dr G. Jayakumar
Hindalco (Rs 121): The overall outlook still remains negative for Hindalco despite a bounce back in the last few days. The immediate resistance appears at Rs 125 and only a conclusive close above Rs 156, will change the outlook to positive. Immediate support appears at Rs 113 and a crucial one at Rs 105. A close below this level will drag Hindalco down to Rs 85.
CNX-IT (6314): The outlook remains marginally negative for CNX-IT index. It finds support at 6,085 and the next one at 5,698. Immediate resistance appears at 6,379 and the next one at 6,541.
F&O pointers: The index is not actively traded. The October futures added fresh longs while none of the options witnessed any activity.
Strategy: Avoid Can I initiate long position on United Spirits and advise on F&O curbs and their effect on stock price. Secondly, I have gone long on Financial Technologies bought at 964. Should I expect target of over Rs 1,000? - Kishore Lekhwani.
United Spirits (Rs 1,225 ): As long as the stock trades above Rs 780, the outlook would remain positive. However, in the immediate term, United Spirits may see some correction, which could take the stock towards Rs 994. However, if it sustains this level, the stock could touch Rs 1,524.
F&O pointers: The United Spirits futures added fresh short positions. Option trading indicates sharp swing for the stock as traders added positions across strike prices.
Strategy: Avoid entering the stock. It will be difficult to trade in when exchanges impose a curb in F&O positions. You could get stuck in your position, where only unwinding could happen. So it is better to avoid such stocks. Generally, the curb is imposed only when the speculation is high.
Financial Technologies: Despite recent gains, the long-term outlook remains negative for the stock. Only a close above Rs 1,185 would reverse the negative outlook. The immediate support appears at Rs 958 and the next one Rs 852 respectively. Resistance appears at Rs 1,065.
F&O pointers: The Financial Technologies futures added fresh longs on Friday while options are not active.
Strategy: If you could afford it, consider holding it with a stop loss at Rs 958 (spot price on a closing day basis).
I have taken short positions in Financial Technologies at Rs 972.80. Suggest strategy– Kishore Ailani
Financial Technologies: Exit. Nevertheless, if you could afford it, consider holding your short position with a stop loss at Rs 1,065. (Spot price on a closing day basis).
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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