Chetan Jain, Deputy Manager (Derivatives Desk) - Equity Research, Anand Rathi shares his technical outlook on futures & options trade and his top strategies in the category. .
Markets were weak in the past few sessions. The Nifty is moving in a narrow range too. What is your take on Nifty futures for Feb expiry?
Nifty on expiry basis has seen decrease in price by around 3.8% along with fall in OI by 15% and better rollover of 72% vs 68% in previous month suggesting most of the shorts have not carried over their positions to the Feb series. PCR OI which has also jumped up above psychological one level and major put writing at 6000 strike prices indicating a bounce back move cannot be ruled out in next few trading sessions towards 6200-6250 levels. One can buy Nifty at any decline with stop loss of 6030 levels. Option traders can simply buy plain vanilla 6200 call option around 55 with stop loss of 25 and target of 100-120 levels.
What strategy do you suggest for trading Bank Nifty in the futures segment?
Bank Nifty after a steep fall in the previous expiry has now come to crucial major support zone around 10000 levels where maximum PUT OI is also concentrated. A pullback move cannot be ruled out on the back of short covering activity and one can play the pullback by buying out of the money call option i.e. 10500 call@170-180 Stop loss of 120 and target of 280 levels on premiums in next few trading sessions.
How to trade Siemens for Feb series in the futures category?
Stock after a recent fall witnessed strong recovery from lower levels as support based buying emerged in previous trading sessions. Stock looks attractive in terms of risk reward ratio from the current juncture. One can buy the stock at any dip with stop loss of 525 for the upside target of 567 levels.
