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F&O cues: Limited downside for SBI, ICICI Bank in October series

Check out the derivative strategies with Dipesh Mehta, Derivative analyst, Nirmal Bang Securities.

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Aastha Agnihotri Mumbai
Last Updated : Sep 25 2013 | 11:19 AM IST
Stock markets extended losses with Bank Nifty shedding over 100 points in the morning session.

So what is the trade in banking stocks as we move into the fresh series?

Check out the derivative strategies with Dipesh Mehta, Derivative analyst, Nirmal Bang Securities.

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SmartInvestor : Markets have been pretty lackluster with no specific trend. Where do you see the September expiry this time?

Dipesh Mehta : Markets despite of being lackluster we are witnessing additions in OI in Nifty Futures for the current month

Dipesh Mehta : so i thinks markets can head lower from here upto levels of 5800-5850

Ankit Sharma : Is there any strategy to trade in this market and counter intra-day volatility?

Dipesh Mehta : Yes very much since there is a lot of positions on the long side as well as on the short side one can expect volatility in todays and tomorrows trading session

Dipesh Mehta : Hence I would recommed Long straddle at 5900 strike on Nifty

Dipesh Mehta : that is one can buy 5900 call as well as 5900 put ..the combined premium at present is near 70-75 and i see targets of 110-125 by today or tomorrow

SmartInvestor : Bank Nifty has fallen nearly 10% post RBI policy. Are you seeing fresh buildup of short positions on Bank Nifty and heavyweights like State Bank of India (SBI) and ICICI Bank?

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First Published: Sep 25 2013 | 11:16 AM IST

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