I bought HCL Technologies June futures at Rs 754.60 Please advice . - Angshuman Nandi
HCL Tech: The long-term outlook remains positive for HCL Technologies, as long as it stays above Rs 588. Of late, however, the stock has been under pressure after hitting all-time high in April. It now finds immediate support at Rs 681 and resistance at Rs 765. Only a close above Rs 765 will trigger a fresh rally. It is likely to move in a narrow range before charting a clear direction.
F&O pointers: The counter witnessed marginal accumulation of open interest on Friday. Options are not that active.
Strategy: It is better to exit from HCL Technologies and re-enter once it takes a clear direction. However, if you can afford risk, hold your position with a stop loss at Rs 726.
Can I initiate strangle in United Spirits using 2600 CE and 2200 PE? Secondly, the stock is falling but put premiums are hardly rising. Please explain. –Kishore Lekhwani .
United Spirits: The stock, which has been on a song in recent times, is losing steam. However, the current bull momentum will sustain as long as it stays above Rs 2,332. Only a close below Rs 1,810 will change the long-term outlook negative.
F&O pointers: Marginal accumulation of open interest is seen on United Spirits June futures. In options, activity was mainly centered around 2,300 and 2,500 strikes, indicating the range for the stock.
Strategy: Strangle on United Spirits may pay well. The only risk is the time value.
Regarding your second query, only in-the-money options react to the swings of the underlying price movement. This is because most of the times out-of-the money options are illiquid.
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
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.