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The medium-term outlook appears bullish for HDIL. The stock finds immediate support at ₹110 and the next crucial one at ₹99.30. A close below this level can change the outlook to negative and drag the stock lower to ₹75. A conclusive close above ₹121 holds the potential to lift HDIL to ₹142 and even to ₹163. The stock appears to be heading towards these resistance levels.
F&O pointers: The HDIL May futures added fresh long positions on Friday. Option trading indicates a positive bias, as calls shed open interest while 110-strike put saw huge accumulation, signalling strong support at this level.
Strategy: Traders can consider a bull call spread on HDIL. This can be initiated by buying 117.50-strike call at ₹8.15 and simultaneously selling the 127.50-strike call, which ended with a premium of ₹4.3. This will entail an initial outflow of ₹3.85/contract, which would be the maximum possible loss. For that to happen, HDIL has to close at or below ₹117.50. On the other hand, traders can earn a maximum profit of ₹6.15/contract, if HDIL closed at or above ₹127.50.
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