Web exclusive: F&O trends and strategies

Check out the trends and strategies for select index stocks with Nandish Patel, Derivative Analyst at Sharekhan

Check out the trends and strategies for select index stocks such as SBI, Reliance Industries, Maruti Suzuki, Bharti Airtel and with Nandish Patel, Derivative Analyst at Sharekhan:

Smart Investor: Markets have recovered marginally after trading lower for most part of the trading session. The Nifty is trading tad above 5,900 levels as of now. What is your call on the Nifty for June options and the strategy for the same?

Nandish Patel : Market is been trading in the range from past couple of days & interestingly we haven’t seen any addition in open interest after expiry. On the option front 5900 strike call & put has seen good activity with a sharp fall in PCR ratio. I my sense I think unless & until market is not giving a close below 5900 levels in future we might see a overall contraction in IV & market will stuck in a range. I will create positional short position only if Nifty future manages to close below 5900 mark.

Smartinvestor : SBI is among the most active stocks in the F&O segment today with contracts at strike prices of Rs 2,050 and Rs 2,200 both on the put and call side. What strategy should investors adopt for the stock for June options?

Nandish Patel : We had seen a good bounce in banking stocks with good volume participation. SBIN in been consolidating & looking at the overall option data I think there is a bounce on the cards. For intraday one can buy SBIN future with a SL of 2000 & targets of 2050-2080 levels.

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