Web special: Heres how May series F&O expiry will pan out

Chandan Taparia - Derivative Analyst at Anand Rathi gives out his top F&O strategies for good returns

Market took a breather and has begun consolidating at current levels after the recent rally that saw benchmark indices touch record high levels in anticipation of Narendra Modi-led Bhartiya Janata Party being elected to power.   

May series expiry was in focus as investors took huge bets on poll election outcome. Now that expiry is round the corner and markets are consolidating, let us understand what does it mean for investors and what top strategies can earn you good returns.

Chandan Taparia Derivative Analyst at Anand Rathi explains how is the May series expiry likely to pan out and what are his top F&O strategies. Below are the chat transcripts:

Nifty is hovering at 7300 levels, with significant volume at 7400 calls and 7300 puts. What does this suggest?

Nifty has seen strong movement of more than 7% in the series but is now finding resistance and hovering around 7300 levels. It has major support at around 7235 levels and hurdle at 7365 breaching which it is likely to trade in the 7450-7480 zone.

Fresh put writing at 7300 strike price indicates multiple downside support levels while call writing at 7400 strike indicates a limited upside for next couple of days.

How is near-term May series f&o expiry likely to pan out? In what sectors do you see maximum roll-overs happening?

We are observe better rolls in selective metals and capital goods stocks. Less roll over of positions in the banknifty index. Roll cost are less which indicates investors are less interested to carry their position aggressively in next month.

SBI is active in call option segment at 2700 and 2800 strike prices and in put options at 2600 strike for the May series expiry. What does this indicate for the counter?

Heavyweight SBIN has seen decent move in last week with built up of fresh long positions. Fresh put writing at 2600 strike would provide support on decline and on upside its tough to hold above 2700+ levels as call writers are putting sustain pressure.

Infosys's call options at 3100 strike for May expiry is also in demand. Your take on this

Infosys is beaten down and an underperformer stock of the last few series. It has seen basing formation at around 3000 zone and may see some short coveting activities as highly oversold and may turn out from bear grip if sustain above 3100 zone. Traders can take risk by making bull call spread strategy

What are your top f&O strategies for short-term gains?

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