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I have a short position on Coforge November futures initiated at ₹8,125.80. Should I hold or exit?
Palani S
Coforge (₹8,327.50): The stock has been in a strong uptrend since May. The latest leg of the rally began a month ago on the back of the support at ₹6,750. Last week, it comfortably closed above ₹8,000-mark. Also, the price action indicates that the upward momentum is strong and there are no signs of a reversal.
Consequently, the November futures on Coforge (₹8,317.35), too, has been steadily gaining. As it stands, there are no indications of the uptrend losing steam. Only if the contract slips below ₹7,500, the outlook can turn bearish. Even if such a move is to happen, it is unlikely to pan out before November contracts expire.
Therefore, we suggest exiting the trade now. You may consider going long on Coforge December futures. So that, you will be along with the trend and the probability of making profits will be higher.
Send your queries to derivatives@thehindu.co.in
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