Web exclusive: Nifty futures witness serious long unwinding

Check out the F&O trends in select stocks with Shshank Mehta, Independent Derivative Analyst

SmartInvestor : Markets have come off their day's highs and the Nifty is trading near 6,150 levels. What is your call on the Nifty in the near term and your advice for Feb futures expiry?

Shshank Mehta : Markets saw a reversal after facing multiple-peaks during the previous few trading. An acute observation was a cut in Nifty Futures Open Interest which saw a reduction by 45 lakh units -- marking serious long unwinding. Below 6235-6255 band the bias will be negative, as there has been lot of short build-up at these levels. My view will turn bullish only on Nifty Futures giving a decive close above 6290.
 

    
SmartInvestor : Infosys has firmed up in late trades. The stock is witnessing activity in the options segment. What is your strategy for the stock for Feb optins expiry?

    
Shshank Mehta : INFY Options for Feb'14 Series are indicating a certain level of indecisiveness. With IVs of INFY options at 16-18 levels; I recommend traders to buy a strangle -- this can be done by buying a Call at 3800 strike for Rs 53 (at 1.49 pm) and buying a Put at 3700 strike at Rs47 (at 1.50 pm).


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