The stock of Adani Ports and Special Economic Zone (APSEZ) (₹1,394.40) is ruling at a crucial level. Immediate supports are at ₹1,355 and ₹1,244. A close below the latter will change the long-term outlook to negative.

Nearest resistance is at ₹1,478. A close above this will trigger a fresh rally. But we expect the stock to move in a narrow range with downward bias.

F&O pointers: APSEZ November futures closed at ₹1,399.95 against the spot close of ₹1,394.40. The premium indicates rollover of long positions from October to November series. Option positioning indicates that the stock could move in the ₹1,200-1,500 range.

Strategy: Consider buying the 1,400-strike put on APSEZ. This option closed with a premium of ₹37.75. As the market lot is 400 shares, this would cost traders ₹15,100. This would be the maximum loss, which will happen if the stock holds above ₹1,400 on expiry. However, profit potentials are high if the stock falls sharply.

Keep initial stop-loss at ₹12.50. Shift this to ₹30 if the stock opens flat or falls marginally at the open on Monday. Target can be ₹70. Traders can adjust the stop-loss as the premium goes up to protect profits. Traders who can take higher risk can even aim for a target of ₹100. Hold the position for a minimum of two weeks.

Follow up: IndusInd Bank moved as expected. Hold the 1,000-strike call for one more week.

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

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