Web exclusive: F&O trends and strategies

Check out the F&O trends and strategies for select stocks with Shshank Mehta, Derivatives Strategist at Shah Investors' Home

Check out the F&O trends and strategies for select stocks such as SBI, United Spirits, Lupin and Titan Industries with Shshank Mehta, Derivatives Strategist at Shah Investors' Home:

Smartinvestor : Markets have extended losses today. However, the Nifty has slipped below 5,800 level. What is your call on the market at current levels and your advice to traders for the week for July options expiry?

Shshank Mehta : We are observing unwinding in Put Options of Jul Series at lower strikes hinting at a downside rise in markets. At current level Nifty Futures has strong resistance at 5840. Traders with a bullish view should exit all long positions and re-eneter only above 5840. Traders with a bearish view may short this market at current and higher levels with a stop loss of 5840.

Smartinvestor : United Spirits (McDowell) is among the most active stocks in the options segment today with contracts at strike prices ranging from Rs 2,200 -2,500. What is your call on the stock at current levels and what strategy can one adopt for July options expiry?

Shshank Mehta : We believe there is more upside to MCDOWELL-N, a quality trader would be to BUY MCDOWELL-N Futures and simultaneously BUY Put Options at strike 2500 capping the downside risk of the trade.

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