Web exclusive: F&O trends and strategies for select index stocks

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

Check out the trends and strategies for select index stocks such as Infosys, SBI, M&M, IDFC and BHEL with Nandish Patel, Derivative Analyst at Sharekhan:

Smartinvestor : Markets have extended gains today and the Nifty is trading well above 6,200 levels as of now. What is your call on the Nifty for May options and the strategy for the same?

Nandish Patel : We had seen a huge momentum buying in the last week. The VWAP levels has moved to 6100 mark with a huge positions changing hand as well around this levels. I think one can buy on dips in the market & play for the higher targets of 6250-6300 levels in coming days.

Smartinvestor : SBI is among the most active stock in the options segment at strike prices of Rs 2,200-2,500 both in the put and call side. What strategy should investors adopt for May options expiry?

Nandish Patel : Banking is the one counter which has lead the momentum. Also I think the stock will remain extremely volatile ahead of its result lined up this week. Overall setup remains positive & one can form a ratio call spread of higher strike. We think another 4-6% move can be seen from here.

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