Check out the F&O trends for select index stocks such as Reliance Industries, ICICI Bank and Hindalco and indices such as Nifty and Bank Nifty with Navneet Daga, Derivative Analyst at KR Choksey Securities:
Smartinvestor : Index heavyweight Reliance Ind seems to break past Rs 840 today after trading in a narrow range for the past few weeks. What strategy should investors adopt for the stock in the options segment for January expiry?
Navneet Daga : Reliance is looking in better shape this time around, its quitely moved on its upper band resistance zone near 860 levels. Creating a bull call spread on reliance make sense to us, where buying 860 call and selling 880 Call options with spread of 5 points is good risk and reward strategy. We expect 880/890 levels to be achieved on reliance once 860 is broken.
Smartinvestor : The Bank Nifty is trading near 12,500 levels. What is your call on the index in the options segment for Jan expiry?