The stock of Gail (India) (₹172.02) is ruling at crucial level. Immediate support levels are at ₹165 and ₹154. A close below the latter will change the long-term outlook to negative. Nearest resistance levels are at ₹184 and ₹201. A close above the latter has the potential to trigger a fresh leg of rally. We expect the stock to move in a narrow range between ₹160 and ₹190 in the short term before taking directional movement.
F&O pointers: The futures witnessed a healthy rollover of 60 per cent to October series. The October Gail futures and September futures closed at ₹175.72 and ₹174.74 respectively against the spot price of ₹172.02. The healthy premium suggests rollover of long positions. From 27.12 lakh shares on September 1, the Oct futures’ open interest jumped to 6.19 crore shares now.
Strategy: Consider Gail (India) October 172.50-call that closed with a premium of ₹5.05 on Friday. As the market lot is 3,150 shares, this strategy would cost ₹15,907.50, which would be the maximum loss.
Initial stop-loss can be at ₹2.75. Shift the stop-loss to ₹5 if the premium of the options moves past ₹5.60. Traders can aim for a target of ₹6.75-7.5. Holding the position for two weeks. If the stock sees a gap up open or down of about 3 per cent on Monday, traders can stay away from the strategy.
Follow-up: The stock of Titan Company moved in opposite direction and triggered stop-loss.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on September 27, 2025