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The outlook for CG Power and Industrial Solutions (₹86.35) remains bullish. The stock finds immediate resistance at ₹95 and a close above that level has the potential to lift the stock to ₹124. While the immediate support appears at ₹72, a close below ₹63 will change the outlook to negative.
F&O pointers: The CG Power December futures added 5.4 lakh shares in open interest on Friday along with sharp rise in price. This indicates the outlook appears bullish in the near term. Options are not that active. However, a little cue available suggests that the stock can trade in the band between ₹80 and ₹90.
Strategy: Investors with a long-term view and risk taking ability can consider going long on CG Power and Industrial Solutions futures with a stop-loss placed at ₹72. Shift the stop loss higher to ₹86, if the stock opens on positive note and trades above that level in the first half of the day.
While the initial target for the counter is ₹95, traders with a high-risk appetite and have deep pockets to withstand any volatility can consider rolling over the positions for ₹124. However, they should remember to shift the stop-loss intelligently to protect their profits.
Conservative traders may consider buying ₹90-December call that closed with a premium of ₹2.05. Since the market lot is 12,000 shares, initial outgo would be ₹24,000. Traders should exit the position with a profit or a loss of ₹8,000.
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