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 at Anand Rathi

Check out the F&O trends and strategies for select stocks such as LIC Housing, ITC, Rural Electrification Corp and Canara Bank with Chetan Jain, Deputy Manager-Derivatives Desk at Anand Rathi:


Smartinvestor : Markets have rebounded today after losses in the past week. The Nifty seems to be inching towards 5,700 mark. What is your call on the Nifty for options expiry?

Chetan Jain : Nifty is trading near its crucial support area of 5600-5700 area wherer maximum put OI is concentrated.The PCR OI has been trading near psychological one level in this expiry, despite market falling continuously, indicates that Put writers are being aggressive even in the falling market and they are comfortable at lower levels. Now sustaining above 1.1 levels may trigger for a good bounce back move on higher side, where as if it falls below 0.95 levels then selling pressure may continue. As direction is not clear but chances of some bounce back are higher from current levels hence we are suggesting BUtterfly strategy: The PCR OI has been trading near psychological one level in this expiry, despite market falling continuously, indicates that Put writers are being aggressive even in the falling market and they are comfortable at lower levels.

For detailed transcript please CLICK HERE