Granules India: Narrow range with positive bias

While the long-term outlook remains positive for Granules India (₹123.35), in the short-term the stock is likely to move in a range with a positive bias. Granules India faces strong resistance at ₹145 and a close above will change the outlook positive. The stock finds immediate support at ₹107 and a close below will change the outlook negative. The stock could move between ₹110 and ₹157.

F&O pointers: The stock fell almost 3 per cent, but added 60,000 shares in open interests. Granules India futures closed almost on par with that of the underlying stock, signalling lack of long build-up. Options are not active.

Strategy: We advice traders to go long on Granules futures with a stop loss at ₹118. Traders could aim for a target of ₹135.8. Stop-loss can be shifted to ₹123, if the stock opens on positive note on Monday. This strategy is for traders who can withstand wildswings and have deep pockets to bear the risk. Traders should borne it in mind that Granules is one of the volatile stocks that could vanish the profit or widen the loss in quick span of time.

Follow-up: Stop-loss would have triggered in Glenmark Pharma.

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