Negative bias seen on Tata Power

I am short on Future Retail August futures at Rs 84 and Coal India at Rs 260 and also holding a long position on Bank Nifty futures at 9505. Kindly advice. — Amit

Future Retail: The outlook remains negative for Future Retail. It finds support at Rs 69 while resistance appears at Rs 88. The chance of the stock hitting new lows appears bright.

F&O pointers: Derivative trading points a negative bias. The counter shed two lakh shares in open interest on Friday along with fall in share price. Option trading indicates Rs 80 as strong resistance point.

Strategy: Hold your short position with a stop loss at Rs 80.

Coal India: The negative bias on the stock remains intact as long as Coal India remains below Rs 283. If it sustains current weak trend, the stock has the potential to reach Rs 197.

F&O pointers: The Coal India Aug futures added fresh short positions. Option trading indicates Rs 260 as crucial level.

Strategy: Hold your short with a stop loss at Rs 268.

Bank Nifty: The index is ruling at a crucial level. A conclusive close below 9,450 will push Bank Nifty to 8,640. Only a close above 11,117 will change the outlook positive for Bank Nifty.

F&O pointers: Futures saw marginal accumulation in open interest. Option trading indicates narrow movement for the index, as lower-strikes put and higher-strike calls added more open positions.

Strategy: Exit on any bounce back.

Kindly advice on Tata Motors August futures sold at Rs 302 P. Vairavan

Tata Motors: The stock is expected to move in a narrow band of Rs 335 and Rs 260 in the short-term.

F&O pointers: The Tata Motors Aug futures added fresh shorts on Friday. Option trading indicates a neutral view as both calls and puts shed open interests.

Strategy: Exit.

I am long on Reliance Industries futures bought at Rs 829. Your expert advice. — Sushil

Reliance Ind: The stock finds immediate resistance at Rs 875 and support at Rs 804. A close below the support will drag it towards Rs 762, which is an important level.

F&O pointers: The counter added fresh shorts on Friday. Cost of carry is negative. Option trading indicates negative bias with Rs 800 as crucial level.

Strategy: Exit.

I bought Tata Power 70 put at 1.1. Please advice. — Angshuman

Tata Power: The outlook turned negative for Tata Power. A conclusive close below Rs 68, will drag the stock towards Rs 55. Immediate resistance appears at Rs 80.

F&O pointers: The August futures of Tata Power added fresh shorts on Friday. Options are not active.

Strategy: Hold your put with a stop loss at 70 paise.

NOTE: The analysis and opinion expressed in this column are based on F&O data available at this point of time and on technical analysis based on past price movements. There is risk of loss in trading.

Feedback may be sent to blfuturesoptions@gmail.com

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