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Web exclusive: Short term traders can go long with stop loss at 6,250

Check out the F&O trends in select stocks with Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rathi

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Tulemino Antao Mumbai
Last Updated : Jan 17 2014 | 3:11 PM IST
Check out the F&O trends in select stocks such as Cipla, Jindal Steel, Ultratech Cement, Apollo Hospitals and Bharat Petroleum with Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rathi


SmartInvestor : After a range bound movement in early trades markets have slipped into negative terrain with the Nifty slipping below 6,300 as of now. What is your advice to traders for the benchmark index for Jan futures?
    
Chetan Jain : Nifty future has been trading in a very tight range since last few trading sessions with major move seen, it facing strong hurdle around 6350-6400 zone where maximum call OI is intact since the starting of the series whereas on downside 6200 & 6100 maximum put OI is suggesting strong support area for the markets. Till the time market is trading in this range of 6150-6380 levels on sustainable basis this consolidation is likely to continue, markets needs a directional trigger to breach the range on either side. For very short term traders, one can go long with stop loss of 6250 levels for the immediate target of 6350 levels in next 2-3 trading sessions.
    

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SmartInvestor : Cipla has firmed up in today's trade. The stock is seeing some action in the options segment. What is your strategy for the pharma major for Jan options?
   
Chetan Jain : Despite markets facing selling pressure at higher levels stock is holding the gains suggesting strength in it. One can go with plain vanilla call option buy of 420 strike price @5.5 and traders can place stop loss of 2.5 for target of 11-13 points on premiums.


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First Published: Jan 17 2014 | 2:37 PM IST

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