DLF can touch Rs 290-295: JK Jain

Written By Unknown on Kamis, 21 Februari 2013 | 16.02

JK Jain of Karvy Stock Broking is of the view that DLF can touch Rs 290-295.

Jain told CNBC-TV18, " DLF has seen strong outperformance in the last two sessions. The stock still has a bit of short position yet to be covered. We do not see a significant downside in the stock at the current level. However the stock has seen significant upsides. We expect the stock to see a fresh roundup buying on declines and could gradually move to around Rs 290-295 towards its next resistance. So on that basis we are giving a Call ratio in February series where in one can buy the 280 Call which is trading close to around Rs 5.5 and simultaneously sell the next strike 290 Call Option which is trading close to around Rs 2.75."


He further added, "The net cost of this strategy would be zero. So if our view goes wrong and the stock goes down as well along with the market there won't be any loss but an offsite strategy would yield maximum profit of Rs 10 if the stock expires at 290 and the upper breakeven would be around Rs 300. So the strategy will start yielding loss only if the stock moves beyond Rs 300. We do not see the stock moving beyond Rs 300 at least in this series so one can initiate a Call ratio at 280 and 290 where the maximum profit would be Rs 10 at 290 levels."



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