Web exclusive: F&O trends and strategies

Check out the F&O trends and strategies for select stocks with Nitin Murarka, Head-Derivatives, SMC Global

Check out the F&O trends and strategies for select stocks such as SBI, Tata Steel, Ranbaxy, Maruti and ONGC with Nitin Murarka, Head-Derivatives, SMC Global:

SmartInvestor:Markets have firmed up after trading in a narrow range in the past few sessions. The Nifty is seen heading towards 6,350 levels. What is your call on the benchmark index for Jan futures expiry?

Nitin Murarka:Markets have given fresh breakout today above 6325 spot level. Last few days when markets were consolidating market breadth was positive as indicated by positive advance decline ratio. As well 6300 strike put writers were very active making 6300 level as a strong support. My sense is market should touch 6450-6500 next week. Long position can be taken with stop loss of 6380 (Nifty spot level). As of now 6500 strike has maximum open interest in call, hence 6500 should act as strong resistance for Jan expiry.

SmartInvestor:Banks seems to be in action in the options segment today. SBI is also active in the options segment today. The stock has topped the 1,800 mark in intra-day trade today. What is your strategy for the stock for Jan options expiry?

Nitin Murarka:Today move in the bank index is indicating positive buildup in the banking stocks. Most of the PSU stocks have given positive breakout of good volume and open interest addition. Stocks like BOB, Federal bank, Albk looks good for fresh long position. SBI has added open interest of 4% with increase in volume. Stock had resistance around 1790 and stock is trading above that. Next target for the stock could be around 1840-1845 and stop loss for the trade should be placed around 1785 levels. SBI 1800 strike call is also very active today one can also buy call for the target of 90.

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