Derivative calls on Adani Ports, Asian Paints, HDFC: Vineet Sood

Here are a few derivative calls from Vineet Sood of SMC Global Securities

Nifty  (7812) Spot
Last week’s  gains erased in single trading session, where nifty corrected more than 180 points. As F&O expiry is on corner, more volatility is not ruled out.  7800 strike Put holds maximum concentration of open interest among all puts and it likely that below 7800 selling pressure will increase.  7720 will be the next support level to watch.

Hence buying Put Ratio Spread option strategy is advised.

Buy 1 lot of Nifty Sept 7800 Put @ 70 (CMP) and sell 2 Lot of 7700 Sept Put @ 30 (CMP).

 
ADANI PORTS: SHORT


Last Close:318

Target: Rs 300

Stop Loss: Rs 329

From last few 2 months, stock was trading in broader range of Rs 325-365 Levels. Today on high volume it broke its range on downside. Combined Open interest is up by 7% with new short. As F&O Expiry is nearby, hence there is high possibility of further fall. Hence short Adani Ports with stop loss of Rs 329.

 

ASIAN PAINTS: SHORT

Last close: Rs 806

Target: Rs 780

Stop Loss: Rs 828

The stock is in continuous down trend from early August, where stock corrected from Rs 925 to 780 levels. Today move suggests the short term bounce is completed and down trend will continue further. Hence Short Asian Paints with Stop loss of Rs 828 level.

 

HDFC: SHORT

Last close: Rs 1164

Target: Rs 1100

Stop Loss: Rs 1,195


HDFC formed rising wedge pattern in bearish trend, which indicates new down moves in coming days. Today stock closed at 5 day low with sharp increase in volumes and open interest. Combined open interest is up 5% on new short position. Hence Short HDFC with Stop loss  of Rs 1195 level.

All discussed price levels are Future Price levels.

Disclaimer: These calls are generated on the basis of derivative data and technical analysis. I personally don’t have any position in discussed stocks but as brokerage house, our proprietary desk and clients may have exposure.

Vineet Sood is Assistant VP - Derivative Research, SMC Global Securities