The stock of The Federal Bank (₹191.71) finds an immediate support at ₹187 and ₹176. On the other hand, nearest resistance levels are at ₹201 and ₹215. A close above the latter will change even the short-term outlook positive for Federal Bank.
Though the short-term technical outlook for the stock remains neutral to bearish, we expect it to bounce off the nearest support.
F&O pointers: The Federal Bank witnessed a rollover of 86 per cent from August to September. Most of the rollover signals a short build up. Federal Bank September futures is ruling at ₹192.64 against the spot price of ₹191.71. Option trading indicates that the stock can move in the ₹185-220 range.
Strategy: Traders can consider buying 195-call that closed with a premium of ₹3.10. As the market lot is 5,000 shares, this will cost traders ₹15,500. This will be the maximum loss and that will happen if The Federal Bank fails to cross ₹195 during the series. The break-even price is ₹198.10.
Keep the stop-loss at ₹1 initially. Stop-loss can be shifted to ₹2.75 if the premium moves above ₹3.50. Traders can aim for a target of ₹4.5-5. If the stock sees a gap-down or gap-up opening, one can stay away from this strategy. We suggest holding the position for a minimum of two weeks.
Follow-up: Contrary to our expectations, Ashok Leyland moved downwards, triggering stop-loss.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on August 30, 2025
