F&O cues: Stick to IT, pharma stocks for now

Indian markets traded firm this Thursday while rupee recovered against US dollar on back of improved risk appetite, however, trading may be slightly volatile on account of Futures and Options expiry of August derivate contracts today.

Check out the trading strategies with Sahaj Agrawal, Deputy Vice-President (Derivative Research), Kotak Securities.

Smartinvestor : August series witnessed a huge unwinding of long positions and creation of short positions by the FIIs. Will September series be on the same line?

Sahaj Agrawal : Looking at the rollover data, A change in trend is possible getting into the September series. The short conviction of the FII segment seems to be tapering to a certain extent. A positive movement in early September looks highly probable; but that should purely be a bounce back to further resume the downtrend.

Smartinvestor : Market volatility has spiked close to 32 levels. How much more of an upside can be seen from hereon?

Sahaj Agrawal : I believe volatility will remain high for most part of September series as the QE Tapering and expectations from RBI remain watched out by all participants. Further increase in volatility from here will happen on the back of a negative news flows.

Smartinvestor : Are there any short positions that one can take on the Bank Nifty?

Sahaj Agrawal : I would wait for a rise in the index to happen before creating short positions. Immediate range for Bank-nifty seen at 8500 and 9025.

Smartinvestor : What trading advice are you recommending to your clients?

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