Infosys (Rs 2,978.4): While the long-term outlook for Infosys remains positive, in the short-term the stock could see some resistance. It finds immediate support at Rs 2,775 and resistance at Rs 3,098. The long-term outlook will remain intact as long as Infosys trades above Rs 2,240.

However, a close below Rs 2,645 will trigger a downfall in the stock that has the potential to take the stock towards its long-term support level. On the other hand, a close above Rs 3,150 will trigger a fresh rally that can lift the stock to record highs.

F&O pointers: Infosys Futures witnessed unwinding of long positions both in August and September contracts. This indicates traders are not willing to rollover their positions. Option trading indicates 2900 is a crucial level.

Strategy: Traders could consider shorting Infosys with a stop-loss at Rs 3,098 for an initial target of Rs 2,775. Stop-loss can be shifted to Rs 2,967 if the stock opens on negative note. Traders with high risk appetite can even consider rolling over the positions.

Alternatively, traders could consider buying Rs 2,950-strike put, which closed at Rs 37.60. While the loss, in this strategy, could be the premium paid, profits will be unlimited if Infosys weakens sharply. Market lot is 125.

Follow-up: Last week, we advised short straddle on IndusInd Bank. Traders, can continue to hold for one more week.

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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