The long-term outlook for Coal India (Rs 204.5) remains negative. The long term outlook will change to positive only if the stock breaks above Rs 277. The stock finds immediate resistance at the Rs 220 and Rs 236 levels. It finds strong support at Rs 187; a close below that level could trigger a fresh slide in the stock. We expect the stock to move in a range of Rs 190-220, before taking a clear direction.
F&O pointers: The Coal India January futures shed open interest positions on Friday, despite the stock posting handsome gains. Options, both call and put, saw open interest declining. This indicates that traders are not willing to carry over their positions, expecting a narrow range.
