The stock of SBI Cards and Payment Services (₹654.70) is ruling at a crucial level. Immediate resistance levels are ₹685 and ₹759. Nearest support is at ₹638, followed by ₹568. We expect the stock to sustain the current recovery trend.Event: SBI Cards and Payment Services is scheduled to announce its Q1 FY27 financial results on July 24, and hence may remain volatile.F&O outlook: SBI Cards July futures closed at ₹654.35 and August futures at ₹647.40 against the spot close of ₹654.70. The counter witnessed steady build-up in open positions in the last few days along with a rise in share price movement. However, the discount signals existence of shorts. Option trading indicates that the stock could move between ₹600 and ₹700.Strategy: Consider buying August 650-call, which closed with a premium of ₹26.05. As the market lot is 800 shares, this strategy would cost ₹20,840, which would be the maximum loss. On the other hand, the profit potentials are high if the stock moves up sharply. The maximum loss occurs if SBI Cards slips below ₹650.Hold the position with an initial stop-loss at ₹15. This can be shifted to ₹20, if the stock opens on a flat-to-positive note. We advise traders to hold the positions for two weeks and aim for a target of ₹40-42.Follow-up: We had recommended put on ITC. The stock moved on expected lines, but did not provide entry point.Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in tradingPublished on July 18, 2026