The long-term outlook for the stock of Adani Ports and Special Economic Zone (APSEZ) —₹890.75 — remains positive. However, in the short term, the stock may find some headwinds technically. While immediate support is at ₹851, the crucial one is at ₹819. Only a close below ₹778 will change the long-term positive outlook for APSEZ. The stock finds an immediate resistance at ₹930 and a conclusive close above that will take the stock above ₹1,000.

F&O pointers: APSEZ December futures at ₹895.70 commands a healthy premium over the spot price of ₹890.75. However, in the last few days, futures shed open interests showing traders’ unwillingness to carry over the position. Option trading indicates a huge range of ₹800-1,000 for the stock.

Strategy: We advise traders to buy 880-strike put on APSEZ, which closed with a premium of ₹20.05. As the market lot is 625 shares, this would cost ₹12,531.25, which would be maximum loss and that would happen if the stock failed to dip below ₹880 before expiry.

On the other hand, a dip below ₹859.95 will start turning the position profitable. We advise traders to enter the contract in the range of ₹19-22 for a target of ₹29-32.

Alternatively, traders could also consider selling ₹1,000-call (a risky strategy as it involves high margin requirement and limited profit). This closed with a premium of ₹4.95, which would be the maximum profit (₹3,093.75 in value terms). This will happen if APSEZ fails to cross ₹1,000 by the end of current expiry. Traders should bear in mind that APSEZ is one of the high beta stocks.

Follow-up: DLF, which started the week on a positive note, failed to sustain the rally and turned extremely weak. We advise traders to exit the position.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading

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