Web exclusive: Nifty Put OI more than 90 lakh at 6,000 level

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

Check out the F&O trends in select stocks such as RComm, SBI, REC, TCS and LIC Housing with Nitin Murarka, Head-Derivatives, SMC Global:



Markets have remained range bound ahead of vote-on-account on Monday. The Nifty seems to be holding above 6,000 levels. What is your strategy for the Nifty for FEB options expiry?

Nifty is trading near crucial support level of 6000 but there are fair chances of Nifty breaking down towards 5850 levels. As derivative data suggest that 6000 put is being accumulated. There is open interest of more than 90 lakh put at 6000 level which is higher than 6 months average. FII are also continuously selling in the index future and buying in option segment. They have sold more than 2000 crore in Index futures and more than 4000 crore in Cash segment since inception of Feb expiry. Nifty volume weighted average price for current expiry is trading around 6053(Future) which should act as immediate resistance. On the upside we are seeing call writing in 6100 and 6200 call option. Hence 6100 should act as strong resistance for Feb expiry. We recommend creating short position in Nifty for the target of 5850 and stop loss should be placed around 6100 spot level. 6000 put option is also very active currently trading around 58 in the market; it can be bought with the stop loss of 40 for target of 110. Nifty 200 days simple moving average is placed at 5978 levels. Traders should closely watch this level.

For detailed transcript please CLICK HERE