I want to buy Sun Pharma and Zen Entertainment futures. Please advise stop-loss and target. - Pratik Desai
Sun Pharma: The long-term outlook remains positive for Sun Pharmaceuticals as long as the stock rules above Rs 565.
The stock is now tantalisingly close to its crucial support level. A close below Rs 565 has the potential to weaken the stock towards Rs 475. However, in between, Sun Pharma finds support at Rs 530. Immediate resistance is placed at Rs 592. A sustained rally could lift the stock towards Rs 915, if the firm manages to close above Rs 611.
Strategy : It is better to wait till the stock manages to hold above Rs 565.
If you are long-term investor and willing to take a risk, enter the counter only if the stock closes above Rs 611. Consider rolling it over for months with a stop-loss at Rs 565 for a target of Rs 915.
Zee Entertainment: The long-term outlook remains positive as long as the stock sustains above Rs 210. Zee Entertainment finds immediate support at Rs 239 and immediate resistance at Rs 269. If the current rally sustains, Zee has the potential to reach Rs 328-330 levels.
F&O pointers: The Zee Entertainment December futures shed open interests on Friday despite the gained marginally. Options are not active to discern any view.
Strategy: If you are willing to take risk, you can enter Zee Entertainment with stop-loss at Rs 239. Otherwise, wait till the stock closes above Rs 269 and consider entering it after that, for a price target of Rs 330.
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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