F&O Query: Analysis Of HAL Futures, Axis Bank Futures

I bought HAL futures ₹4,350 and Axis Bank futures at ₹1,230. What can be the near-term targets for these positions?

– Indranil Gupta

HAL (₹4,501.20): The stock of Hindustan Aeronautics Ltd (HAL) has been in an uptrend since early March. Although the stock is consolidating for over a week now, the bull trend remains valid. So, the price of the stock and the underlying futures can go up from here.

The chart of HAL futures (May) (₹4,510.30) shows that the price band of ₹4,350-4,400 is a support. On the back of this, the contract can resume the upswing. Given the current momentum, although ₹4,680 is a hurdle, we expect the contract to surpass this level and touch ₹4,950 in the near-term. So, your short-term target can be ₹4,950.

But hold the trade with a stop-loss, which can be at ₹4,310. When HAL futures (May) moves up to ₹4,700, revise the stop-loss to ₹4,500. On a rally to ₹4,800, tighten the stop-loss to ₹4,680. Exit at ₹4,950.

Axis Bank (₹1,151.10): For a little over two weeks, this stock has been witnessing a moderation in price. However, the uptrend will come under threat only if the price slips below ₹1,120. That said, from the current level, there might be an extension in downswing, possibly to ₹1,120, before a recovery.

Axis Bank futures (May) (₹1,155.10) can recover either from the current level or after a dip to ₹1,130. Nevertheless, whether this rebound can take the contract above the resistance at ₹1,240 before the expiry is uncertain. So, below are the alternatives that we suggest from which you can choose any one based on your risk appetite.

One, exit the trade and book loss. Two, hold on to the trade but by keeping a stop-loss at ₹1,110. When the contract rises to ₹1,200, alter the stop-loss to ₹1,150. Exit the position at breakeven i.e., at ₹1,230.

You can consider fresh longs if Axis Bank futures (probably June expiry depending on its liquidity and how close you are to May contract expiry) breaks out of ₹1,240.

Send your queries to derivatives@thehindu.co.in

Published on May 10, 2025

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