GMR Infrastructure (₹19.65): The outlook for the infrastructure major company remains positive. Immediate support is at ₹17.15 and only a close below ₹15.7 will change the outlook to negative. Immediate resistance is at ₹20.8 and a close above ₹24.70 will change the long-term outlook positive. Given the current strength, it appears GMR Infrastructure is poised for a good rally.

F&O pointers: Along with a sharp gain in the price, July futures added close to 1.75 crore shares in open interests. Trading in option indicates that the stock could face a strong resistance at around ₹20 and support at ₹17.50.

Strategy: Plain risky strategy is to go long. It is very risky, as the market lot is 45,000. So only traders with deep pockets and patience to withstand wild swings should consider this. While target could be at ₹20.80, stop loss should be placed at ₹18.25.

Alternatively, traders could consider buying ₹20-call and simultaneously selling the ₹22.50-call, which closed with a premium of ₹1.30 and ₹0.60 respectively. Total outgo would be ₹31,500, which could be the maximum loss one can suffer, if the stock settles at around ₹20. A maximum profit of ₹81,000 is possible if GMR Infra closes at or above ₹22.50. We advice the traders to exit the position with profit of ₹12,000 or cut the position with a loss of ₹6,500.

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