I hold one lot of Bharti Airtel Aug futures bought for ₹1,944.70. To hedge my position, I have sold two lots of Aug expiry 2000-CE. What should be my strategy now? – Naresh
Bharti Airtel (₹1,858.60): The stock was consolidating between ₹1,885 and ₹1,950 since mid-July. But last week, it fell below the support at ₹1,885, a negative sign. Although there is a support at ₹1,850, the price action shows that the stock exhibits a bearish inclination.
Hence, even though there is a chance for an uptick from the current level, it is likely to be limited. In the near term, we expect the stock to slip below the support at ₹1,850 and decline to ₹1,815.
Therefore, the August futures can witness further fall. From the current market price of ₹1,866.60, the contract can breach the support at ₹1,860 and drop to ₹1,820, a potential support. Whether it can rebound from ₹1,820 or not is uncertain at the moment.
Given the aforementioned considerations, we suggest exiting all the current positions that you hold. You can then go short on Bharti Airtel August futures at ₹1,870 and on a rise to ₹1,910. Place a stop-loss at ₹1,930.
When the contract slips to ₹1,840, trail the stop-loss to ₹1,875. Tighten the stop-loss further to ₹1,850 when the contract falls to ₹1,830. Exit at ₹1,820.
Titagarh has fallen below support and I’m considering short futures. What can be the ideal stop-loss and what should be the target? – Rudhra Pratap
Titagarh Rail Systems (₹802.95): As you mentioned, the stock breached a support at ₹830 last week, opening the door for further decline. As per the chart, the nearest support is at ₹700 followed by ₹670.
For August futures of the stock, which is now at ₹801.15, is set to decline to ₹700 in the near term. But before that, the contract might see a minor uptick in price to ₹830.
Therefore, go short at ₹830 and place a stop-loss at ₹870. When the contract declines to ₹780, revise the stop-loss to ₹820. Move the stop-loss further down to ₹770 when the price drops to ₹730. Book profits at ₹700.
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Published on August 9, 2025
