The outlook for the stock of SBI Cards and Payments Services (₹658.25) remains bearish. Immediate support is at ₹632 followed by a major one at ₹585. On the other hand, the nearest resistance is ₹695. Broadly, we expect the stock to remain volatile in the short term.

F&O pointers: SBI Cards September futures closed at ₹661.45 against the spot price of ₹658.25. The counter shed open positions from 2.24 crore shares to 2.15 crore shares in the last 10 days as the stock moved in the ₹640-660 range. Option trading indicates that the stock could move in the ₹650-700 range.

Strategy: Consider a long strangle on SBI Cards. This can be initiated by simultaneously buying 670-call and 650-put. As these options closed with a premium of ₹13.80 and ₹12.40 respectively, this strategy would cost investors ₹20,960 (market lot 800 shares). This would be the maximum loss, and that will occur if the stock is stuck between ₹670 and ₹650 through the expiry.

But profit potentials are high if the stock moves sharply in either direction. The trade will yield positive results if stock moves past ₹696.20 or below ₹623.80. We advise traders to exit the position at a profit or loss of ₹2,000-2,500. Holding the position for a couple of weeks may give desired results.

Follow-up: We had advised traders to long on Hindalco. It would have triggered stop loss.

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

Published on September 5, 2026