Power Grid, IDFC

The outlook for PowerGrid has turned negative. As long as PowerGrid rules below Rs 109, it would face stiff resistance. The stock finds an immediate resistance at Rs 103 and support at Rs 95. A close below Rs 95 could weaken it to Rs 84 initially and then to Rs 72-73. Only a close above Rs 109 would change the outlook to positive.



F&O pointers: The PowerGrid futures saw unwinding of long position on Friday . The futures closed at Rs 96.95 as against the spot close of Rs 96.45. Option trading indicates that the stock could see a sharp swing in either directions as 95-strike call and put saw heavy accumulations.

Strategy: Consider shorting PowerGrid December futures with an initial stop-loss at Rs 103 for a target of Rs 84. If PowerGrid opens on a weak note, shift the stop-loss to Rs 95.

The key risk, however, is that the stock might stay in the sidelines for some time. So traders with high patience could consider this strategy with a strict stop-loss.

IDFC: After surging to a year-high at Rs 218 last month, the stock has since turned weak.

IDFC finds strong support at Rs 178.5 and resistance at Rs 193. It appears the stock is heading towards the support level.

A close below Rs 178 could weaken the stock to Rs 145, though Rs 162 could act as a minor support zone in between.

F&O pointes: IDFC witnessed unwinding of long positions, signalling profit taking. The IDFC futures closed at Rs 181.15, a marginal premium over the spot close that closed at Rs 180.25.

Heavy accumulation of open interest in 190 and 180 calls and a marginal addition in 180 put skews the outlook in favor of the bears.

Strategy: Consider shoring IDFC futures with a tight stop-loss at Rs 195, for an initial target of Rs 162. Trail the stop-loss so as to protect profits.