I have a long position on BSE August futures bought for ₹3,602. Should I exit or hold? – Palani Shanmugam

BSE (₹3,450): The stock has been in a downtrend for over two months now. The price has consistently been below the 21-day moving average, showing that the bearish bias is strong. 

As it stands, there are neither indications of a bullish trend reversal nor a support nearby that can arrest the fall. Notable immediate support can be spotted at ₹3,200 followed by ₹3,000, where the 50-week moving average lies.

Given the current scenario, the probability for the stock to decline to ₹3,200-3,000 price band is high. Any rise in price meanwhile is likely to be short lived. 

Similarly, the August futures, now trading at ₹3,465; will also most likely see another leg of fall, possibly to ₹3,200 before any considerable recovery is seen. Thus, we suggest exiting the trade at the current level.

I hold a short position on Lupin August futures. Selling price is ₹2,400. What is the outlook for the stock? Is it advisable to hold this trade? – Vaibhav Desai

Lupin (₹2,363.50): The stock of Lupin has seen a decline in price recently. However, from the current level, there is a support immediately at ₹2,350. Just below this is a trendline support at ₹2,330. These levels have the potential to arrest further decline, especially considering that the long-term is bullish. 

So, the likelihood of immediate rebound and a rally to ₹2,460 and ₹2,500 is highly likely. That said, in case the stock breaches the support at ₹2,330, the sell-off can intensify, potentially dragging the stock down to ₹2,250.

With respect to August futures, which closed at ₹2,380 on Friday, has support at ₹2,370 and ₹2,340. A recovery from the current level can lift the contract to ₹2,475 whereas a breach of ₹2,340 can trigger a decline to ₹2,260.

Given the above factors, we suggest exiting your short position at the current level. Fresh shorts can be initiated in case the futures decisively breach the support at ₹2,340.

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Published on August 7, 2026