Check out the F&O trends in select stocks such as Infosys, Tata Steel and ACC with Navneet Daga, Derivative Analyst, KR Choksey Securities.
SmartInvestor:The PCR-OI increased from 0.82 to 0.91 last week and the India VIX has jumped by 6% to 37 this morning. How do you view this development and where is the Nifty headed?
Navneet Daga:Well currently nifty is consolidating with well defined boundaries of big buildup on both side 6500 puts to 7000 calls. VIX is likely to find resistance near 36-37 zone if a breakout is above 37 then 42 range is what VIX can move ahead of election verdict. Nifty likely to trade with positive bias ahead of election results.
SmartInvestor:IT stocks such as Infosys and Wipro are again under pressure post the short-covering towards the end of the previous week. Does the F&O data suggest fresh shorts in this space?
Navneet Daga:IT stocks had been sideways, currently no major change in stocks derivative data to suggest agressvie shorts. Its more likely to remain range bound. HCL tech had seen short buildup can trade with negative bias.
SmartInvestor:Metal stocks such as Hindalco, Jindal Steel and Tata Steel are witnessing buying interest in the current session. Does the derivatives data suggest short covering or fresh long buildup on these counters?
Navneet Daga:Metals stocks had seen strong short covering bounce. Hindalco had been the strongest among all the metals couterparts. Dips on hindalco can be used to buy with stop loss of 133 on downside.
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