'Expect March F&O expiry above 9,100; 9,400 level on the cards in April'

Interview with Nitin Murarka, Head of Derivatives at SMC Global Securities

The Nifty50 is expected to settle the March expiry of future & options (F&O) contracts in the range of 9,100-9,200, says NITIN MURARKA, Head-Derivatives, SMC Global Securities. In an interview with Aprajita Sharma, he recommends to initiate buy in the index for the target of 9,350-9,400 and stoploss of 9,000 spot levels. Edited excerpts: 

Looking at the options data, where do you see March F&O series of Nifty50 contracts expiring at?

On Tuesday, we saw aggressive writing in 9,100 puts and unwinding in 9,100 calls. Option data indicates expiry above 9,100 and below 9,200. 

What does April series data signal at? Can we expect a clear breakout, or the Nifty50 will consolidate in a range going ahead?

Current data indicates long rollovers in Nifty. Most of the Nifty rollovers have been done with the average of 9,130. Also, put writes are active in 9,000 with April strike indicating 9,000 should act as A strong support for the next expiry. Going to next expiry, I expect uptrend to continue to the next target of 9,400.

Which sectors are seeing heightened activity vis-à-vis the past few months and what does it suggest?

We have seen good buying with addition of open interest in the banking stocks. This data indicates upside on the Nifty Bank will continue for the target of 21,700 to 21,800 in the next expiry.

Can you name a few stocks, which are seeing building up of fresh longs? 

We are seeing good rollovers with long buildup in IndusInd bank, Tata chemicals, and DHFL.  

What would be your strategy for Nifty50, and Bank Nifty, going ahead?

We recommend to initiate buy in Nifty for the target of 9,350-9,400 and stoploss of 9,000 spot level, while on Nifty Bank for the target of 21,700 and stoploss of 20900 spot levels.