Check out the F&O trends in select stocks such as SBI, DLF, Exide, Bank of Baroda and Siemens with Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rathi:
SmartInvestor : Markets continued to trade firm after hitting fresh all-time highs early today. The Nifty seems to be hovering above 6,500 levels as of now. What is your strategy for the benchmark index for March options expiry?
Chetan Jain : Nifty future after a strong run up witnessed some consolidation in previous week with moving in a narrow range of 6460-6600 zone. Now the uptrend is likely to continue in coming days with strong support zone is placed near 6450 levels and till the time it is holding well above this zone positive momentum is likely to continue towards 6700 levels. Option traders can also buy plain vanilla call option of 6700 call at any decline with limited risk.
SmartInvestor : SBI is among the active stocks in the options segment today. The stock has registered contracts at strike prices between 1,650 and 1,800. What is your stragtegy for the state-owned banking major for March options expiry?
Chetan Jain : SBIN which was under performing since last few months has seen strong recovery from lower levels and this time shorts are trapped heavily in it. The fresh additions of OI on long side are also supporting the positive bias in it. To play on safer side one can simply buy 1750 call@20; max risk: Rs.0/-; reward: Double/ Triple
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