The long-term outlook for Titan Company (Rs.361) is positive. The stock has a strong support at Rs.328 with an immediate resistance at Rs.367. If it manages to conclusively breach this resistance, it can hit a target of Rs.384. A close above Rs.384 can take Titan to new highs above Rs.448.
Titan December futures shed 1.54 lakh shares in open interest on Friday, signalling profit taking. Options trading indicates positive bias, as call writers (sellers) prefer to exit from the contracts.
Traders can consider going long on Titan futures if the underlying stock breaches Rs.367. In that case, stop-loss can be pegged at Rs.355 initially and then shifted to Rs.375 levels.
Traders can hold for an initial target of Rs.384, while those with a high-risk appetite can even consider rolling over their positions for high returns. In the event of it breaching Rs.384, Titan Company has the potential to touch Rs.448.
Risk-averse traders can consider buying Rs.360-call that ended at Rs.7.95. Here, the maximum loss could be the premium paid(Rs.11,925). Traders can exit the position if the option premium declines to Rs.4.2 (book a loss of Rs.5,625) or a rally to Rs.15 (can take a profit of Rs.10,575).