Check out the F&O trends and strategies for select stocks such as Ranbaxy, Tata Steel, Titan Ind, Dabur and Bata India with Chetan Jain, Dy Manager Derivatives Desk at Anand Rathi:
SmartInvestor: Markets have remained highly volatile over the past few sessions. The Nifty which slipped below 6,000 level yesterday seems to have regained that level so far. What is your advice to traders and your call on the Nifty for Nov futures expiry next week?
Chetan Jain: Nifty future has been trading near its crucial support zone of 6000 levels as maximum put OI is stood since the starting of the series. One interest part is the PCR has also come to its loer band near 0.87 levels along with increase in implied volatilities suggesting ahead of November expiry volatilities may be seen. If nifty future could not able to hold the current support area then further sell off towards 5900-5850 may be seen whereas it is hold the current levels then fast recovery of 120-150 point may be seen. To utilize either side movements one can go with long straddle strategy by buying 6050 call & put at costing of around 110 points with trading stop loss of 80 levels on premiums and can expect target of 170-200 levels.
SmartInvestor:Ranbaxy Labs seems to be active in the options segment. The stock has been in a steady uptrend over the past few weeks. What is your strategy on the stock for Nov options expiry?
Chetan Jain::Ranbaxy after two days of fall is now witnessing support based buying interest at lower levels. Stock is trading in bullish trend with good strength, on derivative front sustaining above 425 levels may trigger for short covering move on higher side. One can buy stock at any dip till 415 levels with trading stop loss of 405 and upside target of 450 levels in coming days.
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