The short-term outlook for the stock of HDFC Asset Management Company (HDFC AMC) (₹2987.05) appears bullish. The stock finds an immediate resistance at ₹3,120 and the major one at ₹3,280. A close above the latter will change even the long-term outlook positive.

On the other hand, HDFC AMC finds an immediate support at ₹2,857 and the major one at ₹2,715. We expect the stock to move in a narrow range with upward bias.

F&O pointers: HDFC Asset’s December futures closed with a decent premium at ₹2,997.35 over the underlying closing price of ₹2,987.05. For a couple of days, open interests saw steady accumulation, especially on the long side. Option trading indicates that the stock could move between ₹2,800 and ₹3,300.

Strategy: We suggest trades to consider going long on HDFC AMC December futures with an initial stop-loss at ₹2,940. Target can be ₹3,050. The market lot is 200 shares.

This strategy is strictly for traders who can understand risk involved in trading futures. Risk-averse traders can stay away from taking this position.

Traders can shift the stop-loss to ₹2,980 if the stock opens on a positive note and moves past ₹3,010. We advise traders to shift the stop-loss further on every rise to protect profits, based on individual risk-taking ability.

Strategies using options are not recommended as call options are ruling with higher premium due to increased volatility.

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

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