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The short-term outlook for Bharti Airtel (₹341.95) remains positive despite the stock falling on Friday. It finds immediate support at ₹322 and a conclusive close below this level can alter the positive view for the stock. An immediate resistance for Bharti Airtel appears at ₹360 and a close above this level can lift it to ₹383. We expect the stock to remain positive.
F&O pointers: The Bharti Airtel April futures shed over 4 lakh shares in open interest on Friday. The futures also trades at a marginal discount with respect to the underlying stock. This signals unwinding of long positions. Option trading indicates a range of ₹320-370 for Bharti Airtel.
Strategy: Traders can consider buying Bharti Airtel April ₹350 call, which closed with a premium of ₹5.35. As the market lot is 1,700 per contract, it would cost traders ₹9,095. Traders can suffer a maximum loss of the premium paid (₹9,095). This will happen if Bharti Airtel turns weak from the current position. Profit potentials are huge, if the stock rises swiftly.
We advice traders to hold the position if the premium value rises to ₹12 or falls ₹1.80. Holding the position till expiry may be more rewarding for traders.
Follow up: Hold YES Bank position.
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