Web special: Major support for Nifty seen between 5,950-6,000
Check out the F&O trends in select stocks with Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rathi
SmartInvestor : Markets have witnessed volatility in intra-day trades for the past few sessions. What is your near term outlook on the markets and call on Nifty Feb futures?
Chetan Jain : Looking at the Option concentration data when markets were trading below 6000 zone, maximum put OI were intact at 6000 strike price indicating this area becomes the major support zone for the markets. Nifty future now is likely to form short term bottom around 5950-5930 levels and till the time it is holding above this area chances of pullback rally towards 6150-6180 cannot be rules out however breaching the 5950 area will negate the view. TO play the bounce back with limited risk one can go out of the money Bull Call Spread of 6100 vs 6200 at cost of 35 points i.e max risk 35 and max reward 65; BEP 6135.
SmartInvestor : Hindalco is seeing some action in the options segment today. What is your strategy on the metal major for Feb options expiry?
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