Check out the F&O trends in select stocks such as L&T, RComm, Axis Bank, Tata Motors and Aditya Birla Nuvo with Nitin Murarka, Head-Derivatives, SMC Global:
SmartInvestor : Markets have been witnessing lacklustre trades amid consolidation at current levels. Meanwhile, the Nifty has managed to hold above 6,300 levels so far. What is your take on the benchmark index for Jan futures expiry next week?
Nitin Murarka : Nifty has got a max OI concentration at 6,200 that becomes a strong base for Jan expiry. Put Call ratio of 6,200 strike is 3.45 and pUt Call of 6,300 is 1.45 which indicates that Market will take support at 6,300. on the Higher side 6,400 and 6,500 calls has equal number of shares in OI. Option data indicates positive movement in the Nifty. The Nifty has a strong support at 6,270 and resistance 6,350. If it breaches 6,350 then target of 6,400 can be achieved.
SmartInvestor : L&T is seeing some action in the options segment post its results annoucement. The stock has firmed up in today's trade. What is your strategy for Jan options expiry?
Nitin Murarka : Today L&T stock is up with addition of 5% in OI and there is a buying in capital goods stocks across the board. This indicates that there is an accumulation going in the sector. The reason is there was a lot build of shorts while stock prices were down since the inception of Jan options. Shortcovering can push up the prices and L&T can move up to 1,070 in the current expiry. Buy 1,040 Jan call option at Rs 16 stop loss should be placed around 8 and target for the call option should be around Rs 30.
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