SBI Cards and Payment Services (₹791.45) has been moving in a broader range of ₹650-1,000 for some time. Immediate support levels are at ₹760 and ₹725. Whereas nearest resistances are ₹846 and ₹939. We expect the stock to move in a narrow range in the immediate term.
F&O pointers: SBI Cards September futures closed at ₹793.70 on Friday against the spot price of ₹791.45. It witnessed a strong build-up in open interests during the last two weeks. However, in the last two days, open interests fell marginally, indicating lack of clarity on the direction.
Strategy: Consider a short strangle on SBI Cards options. Risk-averse traders avoid this trade as the profit is limited whereas the loss can be huge if left unchecked. Thus, active monitoring of this trade is very crucial.
Implement short strangle by simultaneously selling 860-call and 720-put of September expiry, which closed with a premium of ₹1.80 and ₹1.05 respectively. As the market lot is 800 shares, the inflow will be ₹2,280, the maximum profit. However, loss would be high if SBI Cards swings sharply in either direction. Breakeven prices are ₹862.85 and ₹717.15. Hold the position for two weeks with a stop-loss at ₹4 (combined premium).
Follow-up: Hold the Federal Bank 195-call with a stop-loss at ₹2.50. Revise it to ₹3 if the option premium moves past ₹3.50. Retain the position for this week as well with a target of ₹4.5
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on September 6, 2025
