Web exclusive: Trends and strategies in the F&O segment

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

Check out the trends and strategies for select stocks such as SBI, Reliance Comm, Infosys and Hindalco with Nandish Patel, Derivative Analyst at Sharekhan:

Smartinvestor : Markets have been trading lower tracking weak global cues. The Nifty has been trading way below 5,800 so far. What is your call on the market at current levels and your advice to traders during the week for July options expiry?

Nandish Patel : From past couple of days we are witnessing opening gap but overall market is been consolidating in the range with no clear direction. Implied volatility which has given a break out has again come back into range. I think that market will continue to remain in range for few days. However, from broader view I don’t feel market will go below 5700 & for intraday also one can buy Nifty future around 5780 with stop loss of 5750. I think the closing will be above 5820 today.

Smartinvestor : SBI is among the most active stocks in the options segment today with contracts at strike prices ranging from Rs 1,850-2,000. What is your call on the stock at current levels and what strategy can one adopt for July options expiry?

Nandish Patel : This is the stock which we are discussing in every session from the past month. It was having a good support around 1900 mark. We have seen a closing below this but on lower side good momentum is building. I think one can buy 1950 strike call with a stop loss of 1850 on closing basis.

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