Web exclusive: F&O trends and strategies

Check out the F&O trends and strategies for select stocks with Chetan Jain, Deputy Manager, Derivatives Desk (Equity Research) at Anand Rathi

Check out the F&O trends and strategies for select stocks such as SBI, Tata Steel, Havells India, Maruti Suzuki and HCL Technologies with Chetan Jain, Deputy Manager, Derivatives Desk (Equity Research) at Anand Rathi:

Smartinvestor : Markets have remained rangebound with a negative bias so far. Meanwhile, the Nifty has been hovering just above 5,800 levels so far. What is your call on the Nifty and what strategy should traders adopt for Nifty June options expiry?

Chetan Jain : NIfty after a recent fall has taken strong support from 5700 area where maximmum Put OI is concentrated and now trading into bounce back mode and whenever markets reverses tis direction from oversold territory it generally given a pullback rally for few trading sessions. Now till the time it is holding above 5820 levels 5900-5950 may be seen on higher side. To paly bounce back with lesse risk one can trade in 5900 call at any dip and with stop loss of 20 for upside target of 100 levels on premiums.

Smartinvestor : SBI has been the most active stock in the options segment today. The stock has registered contracts at strike prices between Rs 2,050 and Rs 2,200 levels. What strategy can one adopt for June options expiry?

Chetan Jain : Stock after froming double bottom formation on weekly is seeing good bounce back and we feel the pullback to continue on higher side in coming days. One can go with option strategy to play this move with limited risk : Out of the bull call spread : Buy 2100 Call@35 ; Sell 2200 Call@10 ; max Risk: 25 ; Max Reward: 75 ; BEP: 2125

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