I have bought Coforge January futures for ₹1,810. Should I hold or exit? – Palani Shanmugam
Coforge (₹1,673.30): The stock has seen a sharp fall in price over the past three weeks. Recently, it fell off the barrier at ₹2,000. Thus, the scrip has witnessed rejection thrice at ₹2,000 over the last year. This shows that it is a strong resistance and the stock is unlikely to break out of this anytime soon.
Adding to the bearishness, the price has now slipped below both 50- and 200-day moving averages.
The prevailing price action suggests that the stock is likely to decline from the current market price to the nearest support levels at ₹1,600 and ₹1,525. The equivalent support for Coforge January futures can be ₹1,605 and ₹1,535 respectively.
Even if there is a rebound from one of the support levels, whether the contract can reach ₹1,800 again before the expiry of January contracts is uncertain. Worse, if the support at ₹1,535 is breached, the fall can extend to ₹1,400 quickly.
Considering the aforementioned factors, we suggest exiting your long position on Coforge January futures at the current level.
We strongly recommend placing a stop-loss for all trades so that potential losses due to unexpected sharp movements can be minimised.
Shall I buy a call option on HDFC Bank? – Tarun Dutta
HDFC Bank (₹992.10): For more than two months now, the stock has been in consolidation. It has been oscillating between ₹975 and ₹1,020. A sideways trend is not the right set up to buy options whether it is a call or a put. We suggest staying out until the stock moves out of the ₹975-1,020 price band.
Given the current price action, short strangle can be the ideal strategy. However, it involves high risk and high margin requirements.
Send your queries to derivatives@thehindu.co.in
Published on December 27, 2025
