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Sun TV (Rs 466.85): After remaining firm around Rs 500 level, the stock slipped significantly on Friday, towards its August 2010 lows. If the stock continues to slip, then it has the potential to reach Rs 425. In the short-term, it finds an immediate support at Rs 457 (on a closing day basis), and resistance at Rs 496. Sun TV finds crucial support at Rs 365 and only a close below that could change the overall outlook to negative for the stock On the other hand, only a close above Rs 526 would confirm the bull rally.
F&O pointers: The Sun TV February futures closed at Rs 466.50, at a marginal discount to the spot close. It also added fresh short positions on Friday. Options are not active in Sun TV.
Strategy: Consider shorting Sun TV with a tight spot-loss at Rs 477 (closing spot price basis). If the stock opens Monday on a negative note, shift the stop-loss to Rs 457 and hold it for the next support level.
Polaris Software (Rs 190.40): Polaris Software Lab managed to close on a positive note last week. The stock finds an immediate support at Rs 176 and a resistance at Rs 207. A close above Rs 210 would impart a fresh rally in the stock. If it fails to sustain above Rs 210, the stock could come down to Rs 175 levels.
F&O pointers: The Polaris futures added fresh long positions on Friday and closed at a premium to the spot. Options are not active, but the little available cues suggest accumulation of open interest in calls, indicating limited upside.
Strategy: Consider going long on Polaris Software February futures with tight stop-loss at Rs 176 (closing spot price basis) for an initial target of Rs 210.
Note: Low-risk appetite traders can stay away from both the strategies, as the overall market is set to witness high volatility. 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 or queries (on positions) may be sent to >f&o@thehindu.co.in by Sunday noon. Replies will be published on Monday.
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