Web exclusive: F&O trends and strategies

Check out the F&O trends and strategies for select stocks with Chetan Jain, Dy Manager Derivatives Desk at Anand Rathi

Check out the F&O trends and strategies for select stocks such as L&T, Hindalco, Yes Bank, Zee and Lupin with Chetan Jain, Dy Manager Derivatives Desk at Anand Rathi:

SmartInvestor: Markets continue to trade firm in noon trades on Monday. The Nifty has held on to 6,200 levels so far. What is your take on the Nifty for Dec futures expiry?

Chetan Jain: Nifty future after giving a smart upswing is now heading towards life time high zone, however it may face strong supply between 6260-6350 zone being the crucial hurdle area and in previous occasions also it had given reversal from these levels. Looking at the rollover data which was better around 72% with positive roll cast suggesting that participants were willing to roll their long despite higher premiums. Till the nifty is holding well above 6150 levels positive to range bound move is likely to continue on higher side and this time if markets are able to sustains above life time high zone then a major breakout may lead to a strong rally on higher side. Traders are advised to play with options at this current juncture. Conservative traders can simply buy long strangle or straddle to play either side movement of 150-200 points.

SmartInvestor: L&T has firmed up in today's trades and the stock is witnessing activity in the options segment. What is your call on the stock for Dec options expiry?

Chetan Jain: Stock is clearly in Bullish trend with making higher high on weekly as well as monthly charts. On derivative front stock has been witnessing long built on every decline in past few trading sessions. However entering into naked future will not be favoring a good risk reward hence we are advising to buy plain vanilla 1100 call option with limited downside risk.


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