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.
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.