Nifty seeing major resistance at 7,700: Shshank Mehta

Check out the F&O strategies in select stock with Shshank Mehta, Independent Derivative Strategist

Check out the F&O strategies in select stocks such as TCS, Hindalco, Kotak Mahindra Bank, Asian Paints and Ambuja Cements with Shshank Mehta, Independent Derivative Strategist


SmartInvestor:Markets seem to be volatile today recovering in noon trades. The Nifty is trading way above 7,650 levels as of now. What is your call for Nifty July options?

Shshank Mehta:I continue to believe that markets are weak, from a trading standpoint, and would advise a bear strangle. Consider selling a Call Option at 7700 strike for Rs50 and a Call Option at 7750 strike for Rs30; you can couple this with buying a Put Option at 7650 strike for around Rs80. This way you create a short positions at zero cost and will face a loss only above 7700.

SmartInvestor:TCS is also active in the options segment today. What is your strategy on the IT major for July options?

Shshank Mehta:TCS will move further and has strong support at 2420; consider selling a Put Option at 2500 strike around Rs90 and buy one Call Option at 2400 strike and one at 2450 strike. This is an aggressive spread and should be pursued only by traders who are point blank bullish on TCS. Traders with a bearish view should keep away from TCS.


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