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The outlook for Tata Motors DVR (₹260) has turned bearish. Immediate support is at ₹238 and a crucial one is at ₹218. A close below ₹218 will change the long-term outlook also negative.
Resistances are at ₹271 and ₹298. Only a close above ₹312 will reconfirm the positive outlook.
F&O pointers: Tata Motors DVR shed open positions on Friday along with the fall in its share price. This indicates that the stock could face further pressure. Options on Tata Motors DVR are not active to discern any view. However, a small cue available from the options trading indicates that the stock may see resistance at ₹260.
Strategy: Traders can consider buying ₹250-put which has closed with a premium of ₹3.80 on Friday. With market lot being 2,100 shares, traders will have to shell out ₹7,980.
The maximum loss would be the premium paid, for which Tata Motors DVR has to close at or above ₹253.80.
On the other hand, the profit potential is high, if the stock moves swiftly downwards. A close below ₹246.20 will start yielding positive return for the position.
Hold the position for at least two weeks and exit the option if the premium rises to ₹8 or dips to ₹1.
Follow-up: Last week we had advised a long on ICICI Bank. While risk-averse traders can book profits, others can consider holding the stock with a revised stop-loss.
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