F&O cues: Fly high with Infosys' Butterfly spread

Stock markets have turned jittery ahead of the Infosys second-quarter results tomorrow amid expectations that the country's second-biggest software exporter may raise its FY14 dollar revenue growth guidance in the July-September results.  

The stock is currently trading 0.4 per cent higher at Rs 3,118.

So how should one trade Infosys ahead of its results?

Check out the trading strategies with  Chetan Jain, Deputy Manager (Derivatives Desk) - Equity Research, Anand Rathi Financial Services.

SmartInvestor : Markets have been pretty volatile in the opening trades.Do you expect Nifty to hold 6000 levels by the end of session?

Chetan Jain : Nifty future had finally broken the trading range on higher side and closed above crucial hurdle zone of 6000-6020 levels. Nifty future today after a gap down opening till the sustaining above 6000 psychological mark any dip can be considered as buying opportunity. however if it fails to hold 6000 psychological levels then some profit booking may be seen towards 5950 levels. Aggressive traders can buy 6100 call option to play the upside momentum with limited risk.

SmartInvestor : Premium for Infosys has risen ahead of its Q2 results. How should one trade this counter if Infosys results meet estimates?

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