Derivative trading strategies for select index stocks

Find out trading strategies for the derivative segment with Chetan Jain, Asst Manager, Derivatives Desk, (Retail Research), Anand Rathi.

Smartinvestor : The markets have once again turned weak after the slight rebound on Friday. The Nifty is trading way below 5,700. What is your take on Nifty futures for March expiry?

Chetan Jain : NIfty has seen pirce decline of more then 5% in previous expiry with sustained selling seen almost accross the board except in IT space.

Smartinvestor : Hindustan Unilever has been in a correction mode from Rs 477 levels. The stock is marginally down today. What strategy should investors adopt for the stock for March futures?

Chetan Jain : HUL is also trading near its critical support of 450 zone with huge accumulation seen around these levels. TO play pullback rally from current levels we are adivising covered call strategy rather then going naked future long. In this strategy one has to buy future around 447 and sell out of the money call 460 strikep irce around 7 hence overall BEP is 440 .

Smartinvestor : Dr Reddy's Labs seems to be active in today's trade. Open Interest in the pharma major is marginally up today. What is your take on the stock for March futures?

Smartinvestor : Ambuja Cements has been volatile for the past few weeks with strong resistance above Rs 200 levels. There is sharp rise in Open Interest in the stock. Is there a build-up of short positions in the stock and what is your call for March futures?


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