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

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

Smartinvestor : The markets have remained flat since early trade today. The Nifty seems to be hovering around 5,550 levels so far. What strategy should traders adopt for Nifty April futures expiry?

Nandish Patel : We had seen a sharp fall from the higher levels but from the derivative data its is clearly visible that market is in oversold zone as PCR ratio is hovering around 0.80 & recent bottom is around 0.78. So we might see a bounce in market upto 5600-5630 levels. On lower side 5520 on a closing basis is a very strong support. I will recommend going short only if Nifty manages to close below Straddle break even point which is 5520.

Smartinvestor : Infosy is among the most active stocks in the options segment today. The stock is witnessing action at strike prices from Rs 2,600 to Rs 2,900 on the Put side and Call side. What is your call for April options expiry?

Nandish Patel : The stock is been facing resistance above the mark of 3000. Thrice we have seen stock retracing from those levels. IV on other hand has started its northward journey as quarter result is lined up later in this week. I feel that the stock would remain extremely volatile ahead of its result & might trade with a negative bias. On lower side i am expecting 2800-2750 before result.

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