Check out the F&O trends in select stocks such as Infosys, SBI, Tata Global, United Spirits, Mah & Mah with Nitin Murarka, Head-Derivatives, SMC Global:
SmartInvestor:Markets have firmed up today on the back of upbeat earnings from Infosys and after trade deficit in December 2013 narrowed year-on-year and the Nifty has now regained 6,200 levels. What is your call on the Nifty for Jan futures expiry?
Nitin Murarka:It is good that we are again gaining upside momentum after consolidation for 5 trading session. Nifty has Major support around (6130-6150) levels and Nifty Managed to hold those levels and crossed 6200 level today with 5% open interest addition indicating fresh long buildup. In option segment we are seeing call writers are liquating 6300 call option and put writers are active in 6200 put option. This is again positive data for Nifty. Overall as per data Nifty should bounce to 6270-6290 level next week. Short term support is placed around 6180(Spot). Hence 6180 should be the stop loss for all short-term buy positions. For entire Jan series Market is trying to build base around 6100-6000 as put open interest is maximum at these two levels, However market will face resistance in the zone of 6300-6350 in the Jan series.
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SmartInvestor:Infosys is active in the options segment today. The IT major was in a correction mode since the start of the week but had firmed up yesterday. What is your strategy on the stock for Jan options expiry?
Nitin Murarka:Infosys has strong resistance at 3580-3590 level, once it crosses these level it will resume new move for the target of 3700.It has got good support around 3400 level. As of now derivative data and charts indicating that stock should trade sideways next week in the band of 3450 to 3600 however long term charts are in very strong uptrend. There was short build up in the INFY before result as we are seeing short covering in today’s trade. Today open interest is down by 2.5% and stock is up by more than 2%. Implied volatility has also fallen by more than 40%. This indicates sideways movement in the stock. In the IT sector Tech Mahindra and TCS is looking very strong. One can buy TechMah for the target of 1950 and TCS for the target of 2400.
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