Web exclusive: F&O trends and strategies

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

Check out the trends and strategies for select stocks such as TCS, DLF, Apollo Tyres, LIC Housing and Hero MotoCorp with Nandish Patel, Derivative Analyst at Sharekhan:

Smartinvestor : Markets have been volatile for today. The Nifty has been trading near 6,020-30 levels in late trades. What is your call on the market and your advice to traders ahead of July futures expiry?

Nandish Patel : Markets were able to surpass the hurdle of 6000 and now this level might act as a good support as good amount of activity on the options front has been witnessed at strike of 6000. Also, the volume weighted average price for Nifty on weekly basis is at 6000, put to call ratio (PCR) is at 1.31. And even the implied volatility has been cooling off from past couple of day indicating that we might see some volatility but on higher side 6100-6130 will act as a hurdle. We advise to buy on dips with a stop loss of 6000 on closing basis.

Smartinvestor : Software major TCS is among the active stocks in the options segment today. What is your call on the stock at current levels and what strategy can one adopt for July options expiry?

Nandish Patel : Since start of the current series overall information technology space has been on the run and is been outperforming other sectors. The run in the stocks has been majorly due to closure of short positions post good quarterly numbers of the company and the same would continue. So from expiry perspective we recommend to buy TCS for higher targets of 1800-1820.


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