Gail India stock ($129.5) rules at a crucial level. It finds immediate support at Rs 121 and a close below will trigger a fresh breakdown that could reach Rs 110 or even Rs 85.

On the other hand, GAIL India finds immediate resistance at $138 and further resistance at $158.

Technically, the short-term outlook for GAIL India is negative. However, we expect the stock to see a pullback after the recent decline.

F&O Indicators: Open interest positions increased to 4.45 crore shares on Friday from 4.31 crore shares on December 1, even as Gail India was hovering around ₹ 130. However, the increase in open positions was not consistent and on some days open positions declined. Options trading suggests that the stock will move in the $120-$150 range.

strategy: Traders are advised to consider buying the Gail India call option at $132.50 which closed at a premium of $2.25 on Friday. As the market share is 6,100, this strategy would cost the investors ₹13,725, which would be the maximum loss one could incur. To maximize the loss, you must rule Gail India at less than $132.50 at expiration. The breakeven price for the strategy is INR 134.75.

Profit potential is high if Gail India rises sharply in the current streak. We recommend exiting the position with a profit of INR 13,000 or exit if the loss escalates to $7,500.

tracking: Traders are advised to book a profit on Tata Power (recommended last week – Short ₹ 250-call) and bull spread on Tech Mahindra (recommended 2 weeks ago). Regarding the calendar difference on the recommended Nifty 50 options a few weeks ago, the December expiry of 17,000 – short call and 17,000 calls from the March series lasted.

Note: Recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.

Source link

By admin

Leave a Reply

Your email address will not be published.