Derivative calls on Infosys, Pidilite Ind, Zee Entertainment: Vineet Sood

Here are a few derivative calls from SMC Global Securities in trade today:

NIFTY (7717)

After shedding 300 points in last 4 session bring  Nifty  at yearly lows.  Hereafter the range of 7900-7500 will remain crucial in the near term, and the move is expected to remain volatile and negative as indicated by option open interest concentration. If Nifty slips below the 7650 mark, it could slide to 7500 levels due to increased selling pressure. Any short covering will face resistance at 7900 level. It is advisable to use bounces to create fresh short and keep 7900 level as short term trend changer point.

INFOSYS: LONG

Last close: Rs 1106
Target: Rs 1170
Stop Loss: Rs 1090

INFY is trading in narrow range between  Rs 1070 -1115 from past many days. Meanwhile  short open interest in  shedding in Future and ATM calls, which indicates high probability of upside breakout. Hence Buy it only above Rs 1118 with protective stop loss of Rs1090.

 
PIDILITE IND: LONG

Last close: Rs 560
Target: Rs 600
Stop Loss: Rs 545

After recent consolidation, PIDILITE is indicating its long trend is likely to resume upward. Price pattern  and volume confirms the possible reversal. Hence buy it with stop loss of Rs 545.

 
ZEEL: SHORT

Last close: Rs 365
Target: Rs 354
Stop Loss: Rs 368

ZEEL is one of the weakest stock on charts in Nifty Index. Today stock has added 8 percent addition in open interest on short side. The chart pattern is signaling more weakness in coming sessions. Rise in trading volume and short OI addition suggests more weakness. Hence short below Rs 363 with stop loss of Rs 368.

 
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