IEX (₹202): The stock of IEX, after witnessing a sharp fall in price, has been consolidating for a while. It has been oscillating between ₹198 and ₹213 for the past two weeks. Until the stock moves out of this price band, we cannot be certain about the next leg of trend.
Also, continued consolidation is detrimental for option long positions as time decay will eat up the premium as time goes by. Therefore, you may now exit the option that you hold. Depending on the direction of the break, you can consider taking the next trade.
Jubilant Foodworks (₹622): The stock of Jubilant Foodworks has been on a decline over the last couple of weeks. But this week, it seems to have found support at ₹610. Also, in the daily chart, the scrip has formed a morning star candlestick pattern, a positive sign.
However, there is a barrier at ₹640. So, even though there are signs of a recovery, the bulls should take the stock above ₹640 to build a sustainable rally. Also, note that there is another resistance at ₹670 and a recovery beyond this level, before the end of this expiry is less likely. Hence, you can hold the call option, but exit at the prevailing price when the stock rallies to ₹670.
PNB (₹104): The stock of Punjab National Bank (PNB) has been depreciating since early June. It fell off the resistance at ₹136. Particularly, over the past two months, the chart shows that PNB has been consistently forming lower highs and lower lows, showing a steady downtrend.
While there is support at ₹100, there are no signs of a bullish reversal now. The price action hints at a potential decline to ₹95, a notable support. So, even if there is a reversal, it might happen only after the price drops to ₹95. So, we suggest liquidating the call option now.
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