GAIL India (Rs 318.9): The immediate-term outlook remains negative for GAIL India. The stock is crucially placed at its major support band at Rs 308-310. A close below Rs 308 will trigger a fresh fall and which in turn may pull the stock below its 52-week low level, which is Rs 276. GAIL India finds immediate resistance at Rs 335. Only a close above Rs 410 will change its long-term outlook positive.
F&O pointers: The GAIL India August Futures added fresh shorts on Friday. About 78 per cent open interest positions got rolled over to August series. This was slightly higher than the three-month average figure of 69 per cent. Options are not active.
Strategy: Sell GAIL India Futures with a stop-loss at Rs 335 for a target of Rs 276. Traders can shift the stop-loss to Rs 318, if the stock opens on a negative note and closes below that level on Monday.
Follow-up: Last week we had advised shorting on BHEL futures. The stock is almost near our target.
( 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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