Crime Today News
The stock of Power Grid Corporation (₹290.35) is ruling at a crucial level. The immediate support levels are ₹275 and ₹239. A close below the latter will alter the long-term bullish view.
Nearest resistance levels are ₹306 and ₹327. A close above the latter will confirm the bullish view and reignite a fresh rally. We expect the stock to move in a narrow range with downward bias in the short term.
F&O pointers: Power Grid April futures closed at ₹291.70 against the spot price of ₹290.35, maintaining a small premium. Option trading indicates that it could move in the ₹285-300 range.
Strategy: Consider buying 290-put (April expiry) of Power Grid. This option closed with a premium of ₹7.20 on Friday. As the market lot is 1,800 shares, a long position on this contract at ₹7.20 would cost ₹12,960.
The maximum loss will be the premium paid (i.e. ₹12,960) and that will happen if Power Grid moves up sharply from the current level. The breakeven point is ₹282.80.
Keep initial stop-loss at ₹2.50. Shift this to ₹7 if the stock opens weak and the premium rises to ₹7.75. Traders can aim for an initial target of ₹9.50. Traders with higher risk appetite can aim for a higher target of ₹12. Hold the position for at least two weeks.
Follow-up: As Apollo Hospitals Enterprise opened with strong gains, it provided little opportunity to trade.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
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