The stock of The Federal Bank (₹318.20) currently maintains a negative bias. Immediate support is at ₹303 followed by ₹290. A close below the latter will trigger a fresh sell-off. 

Immediate resistance is at ₹331 and a major one at ₹345. A close above the latter will change both the long and short-term outlook positive.

Event: RBI policy announcement is on October 7.

F&O pointers: Federal Bank Oct futures closed at ₹320.40 versus the spot close of ₹318.20, maintaining a premium. The counter witnessed steady accumulation of open positions despite a fall in share price. Option trading indicates that the stock could move in the ₹300-350 range.

Strategy: Consider strangle on Federal Bank. This can be initiated by buying 305-put and 330-call. These options closed with a premium of ₹3.90 and ₹5.35, respectively last week. As the market lot is 2,500 shares, this will cost traders ₹23,125, which would be the maximum loss in this trade.

The maximum loss will happen if the stock is stuck between ₹305 and ₹330. The position will turn profitable either on a close above ₹339.25 or a close below ₹295.75.

Traders can aim for a profit of ₹2,000 or exit the position if the loss mounts to ₹2,000. The stock will be volatile due to RBI monetary policy and may provide profit opportunity.

Follow-up: Hold the long strangle on HDFC AMC for one more week.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.

Published on October 3, 2026