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How to trade Nifty on Feb F&O expiry day?

Technical analyst Ravi Nathani of nsetoday.com tells the best strategy to trade Nifty on the Feb series F&O expiry day

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Manu Kaushik Mumbai
Last Updated : Feb 26 2014 | 11:30 AM IST
Benchmark indices continue to maintain the upbeat trend led by buying among FMCG, Capital Goods and Power shares.

Markets may remain volatile today as traders will roll over positions in the futures and options (F&O) segment from the February series to March series. The expiry is scheduled today as the markets will be closed on Thursday due to Mahashivratri.

On expiry, Siddarth Bhamre-Equity Derivatives and Technicals at Angel Broking says, "We are anticipating expiry around 6,250 and expect first week of March series to be broadly positive and hence recommend to continue to hold on to long positions."

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So, what should be the best strategy to trade Nifty on the Feb series F&O expiry day?

Technical analyst Ravi Nathani of nsetoday.com tells this; also he picked stocks from small-cap space for short-term gains. Below is the complete transcript:

How to you suggest approaching benchmarks indices given its Feb F&O expiry day. What are the levels to watch out for?
Nifty Index trend is bullish whereas intraday resistance expected is around 6225 / 6240 & 6265. Index on charts is bullish and next target expected in near term is around 6290. Best trading strategy for traders would be buy on dips with a strict stoploss of close below 6160.

So, what are the stocks/ sectors you are bullish on in the short-term?
I am bullish on AUTO / IT & Pharma Sector, whereas best picks from these lots are M&M, HEROMOTOCO, MARUTI, INFY, TCS, HCLTECH, WIPRO, MINDTREE, SUNPHARMA, DRREDDY, APLLTD & LUPIN. I am suggesting all my clients to accumulate these stocks for a short, medium and long term as all of them are expected to outperform the market.

What's your take on IT stocks; after missing out on previous rallies they are back in focus now?
As mentioned above I am bullish on IT sectors whereas top stocks like INFY & TCS is a buy on CMP with a target expected INFY + 4000 & TCS + 2360

What are you betting on in the small-cap space?

Click here for more....


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First Published: Feb 26 2014 | 11:25 AM IST

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