Bet on GSPL, Bank Nifty:: Business Line,

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If GSPL sustains the current momentum, then it could set a new high. According to Fibonacci projections, GSPL has the potential to reach Rs 152.

GSPL: Thanks to last week's strong show, the outlook for the stock has changed to positive.

After moving in a narrow band of Rs 85-100 in the last five months, it broke its crucial resistance on Friday along with spurt in volumes.

The stock now finds strong support at Rs 86, and only a close below that would warrant a change in outlook. In that event, the fall could be sharp and swift.

If GSPL sustains the current momentum, then it could set a new high. According to Fibonacci projections, GSPL has the potential to reach Rs 152.

F&O pointers: GSPL has been witnessing a steady accumulation in open interest on the long side. On Friday, it saw a healthy accumulation in open interest.

Options on GSPL were not that active. Rollover of open interest position stood at 15 per cent, which is quite normal.

Few though, the cues from option trading indicate a positive bias as 100 and 105 calls witnessed unwinding of long positions.

This suggests calls writers may be covering their positions. On the other hand, puts saw heavy accumulation, indicating the willingness of put writers.

Strategy: Traders can consider going long on GSPL, keeping the stop-loss at Rs 98. Long-term investors can consider keeping the stop-loss at Rs 88 for a target of Rs 152.

Market lot for GSPL is 4,000 shares.

Traders can consider rolling over this position even after expiry. Since the market lot is on the higher side, this strategy is for traders who can afford to take a risk.

Bank Nifty: The index has stabilised after the recent fall and now faces support at 10,460 and resistance at 11,325. If the current rally sustains, the index could reach 11,680.

The long-term outlook appears positive for Bank Nifty, as long as it stays 9750.

F&O pointers: The Bank Nifty futures saw a marginal accumulation of open interest on Friday. But rollover to August series was quite robust. Options indicate a positive bias.

Strategy: Traders can consider going long on Bank Nifty futures with a stop loss at 10,460 for an initial target of Rs 11,640. Traders, however, can shift the stop-loss to 11,325 if the index moves up.

Follow-up: Last week, we had recommended a short strangle on DLF and a short on Tata Chemicals. We advise traders to continue holding these positions