Web exclusive: Nifty still seeing maximum put OI at 6400 strike puts

Check out the F&O trends in select stocks with Nitin Murarka, Head-Derivatives, SMC Global

Check out the F&O trends in select stocks such as Bharti Airtel, DLF, Divis Labs, Asian Paints and Sun Pharma with Nitin Murarka, Head-Derivatives, SMC Global:


SmartInvestor:Markets have extended losses today and the Nifty has been hovering around 6,450 levels as of now. Is the Nifty looking weak at current levels? What is your strategy for the benchmark index for March options?

Nitin Murarka:Despite profit booking in Nifty we are still seeing maximum put open interest at 6400 strike puts. That indicates that put writers are still holding short positions. Hence my sense is market will find strong support around 6400 levels. In this correction we are not seeing significant liquidation in Nifty open interest position that also indicates that it can be buying on dip market. Put call ratio is also trading above comfortable zone which is around 1.30.Market should bounce and retest 6550-6600 in the current expiry. I would recommend buying 6500 call or buying Nifty futures with stop loss of 6400 (Spot level)
 

SmartInvestor:Bharti Airtel has been active in the options segment today. The stock has been trading near Rs 300 levels in the past few sessions. What is your strategy for the telecom major for March options?

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