Web exclusive: OI build up seen in 6800 Nifty call options

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 SBI, L&T, Hindalco, Lupin, Jindal Steel such as with Nitin Murarka, Head-Derivatives, SMC Global:

SmartInvestor : Markets have remained volatile within a narrow range so far. The Nifty has managed to stay above 6,700 levels as of now. What is your call on the benchmark index for May futures?
    
Nitin Murarka : Nifty has strong support in the range of 6650 to 6700 levels. We are also seeing open interest is building up in 6800 call options. Looking at election results on 16 May 6800 call option can be bought. Friday data indicates that short positions were getting covered. Hence there are fair chances of market going up towards 7000 levels. I would recommend buying Nifty Futures with the target of 7000 and stop loss should be placed around 6650 spot level. Even 6800 or 6900 calls can also be bought.

    

SmartInvestor : SBI is among the active stocks in the options segment today with contracts at strike prices between Rs 2,100-2,200. What is your call on the banking major for May options?
    
Nitin Murarka : SBI charts are very strong and stock is trading in strong uptrend. Today stock took resistance around 2100 levels and call writers are active in 2100 and 2200 call option. Stock may correct to 2000 levels. But as the stock is up trending we should adapt buy of dip strategy. It has got strong support at 1980 levels. Since inception of May expiry stock has added open interest of around 11% and stock is trading flat to negative indicates lack of buying interest at current level. On the upside we should closely watch the level of 2100 if it breaks than there is possibility of stock moving towards 2250 levels. Almost all the banking stock are consolidating there is fair chance of further rally hence buy on dip strategy should be adapted in banking stocks.

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