I have a long position on JSW Energy futures bought at ₹596. What is the outlook for the stock? Should I exit or hold?

Pradeep Kabra, Mumbai

JSW Energy (₹535.30): The stock has been on a decline for over two weeks now. The price action during this period shows a clear bearish bias.

But there is a support at ₹530, which can arrest the fall. A rebound on the back of this can lift the stock to ₹570. However, if ₹530 is breached, the stock might fall to ₹500.

For JSW Energy September futures (₹540.60), the highest traded price so far in September futures is ₹588 and so, the purchase price of ₹596 may be incorrect. Nevertheless, below is our analysis and recommendation. 

The futures contract, too, has been depreciating. But there is a support ahead at ₹530. A recovery can lift the contract to ₹565. However, if the contract falls below ₹530, it can slip to ₹510 and ₹500.

Overall, given the bearish inclination that the stock and its futures exhibit, it is not ideal to hold longs. However, since there is a support at ₹530, you may place a stop-loss at ₹520 and retain the trade. When the contract rises to ₹556, tighten the stop-loss to ₹540. Exit at ₹565.

What is the outlook for CG Power? Do you recommend buying call options?

Saravanan Na

CG Power and Industrial Solutions (₹889): Since early August, the stock has been consolidating between ₹860 and ₹900. That said, the broader trend is bullish and the chart shows the formation of a higher base recently.

Therefore, we expect the stock to break out of ₹900 and rise to ₹950 in the near term.

If you wish to play it safe, we recommend waiting for the stock to surpass ₹900 before buying a call option. Instead, if you are a trader with high risk tolerance, you may consider buying calls now, preferably at-the-money or near at-the-money strikes. 

In either case, book profits by exiting the call option at the prevailing premium when the stock touches ₹950. As a stop-loss, you may exit the trade at ongoing option price if the scrip breaches the support at ₹860.

Send your queries to derivatives@thehindu.co.in

Published on August 29, 2026