Check out the F&O trends in select stocks such as RIL, ICICI Bank, United Spirits,PNB, Sesa Sterlitewith Nitin Murarka, Head-Derivatives, SMC Global:
SmartInvestor : Markets have remained volatile in a narrow range with a negative bias. What are the trends seen on the first day of the May F&O series? Further, what is your strategy for Nifty options with volatility likely to pick up going forward?
Nitin Murarka : Nifty rollover is around 59% lower than three months average of 65% however market wide rollover is around 79% which is in line with three month average of 80%. Rollover cost suggests long rollover hence we should adapt by on dip strategy. In the current series highest call concentration is seen in 7000 call option and highest put concentration is seen at 6000 strike put. Call concentration of 7000- suggest that there is buying position in 7000 call as current month is the election results month. Most of the derivative and technical indicators are positive as of now hence we should adapt buy of dip strategy. There is possibility of market touching 7100 before election results. If for any reason Nifty gives dip of 70-100 points I would recommend buying 7000 call option.
SmartInvestor : Reliance Ind has been active in the options segment today. The stock seems to be finding tough resistance as it approaches Rs 1,000 mark. What is your strategy on the stock for May options?
Nitin Murarka : As of now Reliance Ind is trading down by 1.5% with 3% increase in open interest suggesting short position buildup. Stock has strong resistance around 980 levels and supports around 940 levels. If it breaks 940 than it can further fall up to 920 levels. Stock may under perform next week or it may remain sideways also. However if stock correct and fall to 920 levels that buying of 920 call options is recommended.
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