The stock of Bharti Infratel (₹308) is ruling at a crucial level. The stock finds immediate resistance at ₹321. If it is able to close above that level conclusively, the medium-term outlook will turn positive and can take the Bharti Infratel stock to ₹404. On the other hand, the stock finds immediate support at ₹296 and a conclusive close below ₹280 will change the outlook to negative.
F&O pointers: Despite a decent gain on Friday, the counter did not see much accumulation in open interests. Trading in option indicates that the stock may see a strong resistance at ₹320 and support at ₹300.
Strategy: We advice traders to go long on Bharti Infratel futures with a stop loss at ₹296. If the stock opens on a strong note, shift the stop-loss to ₹312. Traders can book profit at ₹321. Alternatively, they can also consider buying ₹320-call on Bharti Infratel that closed at ₹5.15. With market lot being 1,600, total loss could be ₹8,240 — the total premium paid. We advice investors to exit if the loss mounts to ₹5,500 or at a profit of ₹8,500.
Follow-up: Hold on to DLF strategy as suggested last week.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.