Titan Industries (Rs 231): Titan Industries finds immediate support at Rs 205, which is a very crucial level. A close below that will change the medium-term outlook to negative for the counter. The next support is placed at Rs 160.
The stock finds strong resistance at Rs 245. Only a close above Rs 265 will change the long-term outlook positive for Titan Industries.
F&O pointers: The Titan Futures shed open interest despite scoring marginal gains on Friday. Options are not that active. However, available cues suggest positive bias, as calls shed open positions.
Strategy: Traders can consider short strangle on Titan Industries.
This can be initiated by selling Titan 240 call and 220 put, which ended at Rs 6.15 and Rs 6.30 respectively.
While the maximum profit is the premium collected (i.e. about Rs 12 a contract or Rs 12,000), but loss could be unlimited if Titan swings violently in any one of the directions.
The position will start pinching the traders if Titan moves above Rs 253 or dips below Rs 207. Market lot is 1,000 units/contract and selling options involve margin commitments.
( Note: Feedback or queries (on positions) may be sent to >blfuturesoptions@gmail.com by Sunday noon. Replies will be published on Monday.)
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