Check out the F&O trends in select stocks such as SBI, Bharti Airtel, BHEL, Biocon and Ciplawith Chetan Jain, Deputy Manager -Derivatives Desk, Anand Rathi:
SmartInvestor : Markets are trading near their day's highs with the Nifty trading way above 7,300 as of now. What is your take on the benchmark index and your strategy for Nifty June options?
Chetan Jain : Nifty future in the previous week witnessed some profit booking with long liquidation seen from higher levels. On the first of June Calendar month Nifty future had seen good recovery from the immediate support area around 7230 levels and now it sustains above 7300 zone and closes today then positive move may be seen towards 7450-7500 levels which is the next hurdle zone. Looking at the option data for June series maximum call OI is seen at 7500 followed by 7400 strike prices whereas maximum put OI is at 6800 & 7000 strike prices suggesting broader range is likely in between 7000-7500 levels. Option traders can enter go long in 7400 call@85-90 sl 65 target 125-140 levels.
SmartInvestor : SBI is also active in the options segment today with contracts at strike prices between Rs 2,600 and Rs 2,800. What is your strategy for June options?
Chetan Jain : SBIN had seen strong recovery from lower levels suggesting shorts are trapped and now sustaining above 2600 zone may trigger for next round of momentum on higher side. Option players can go with 2660 vs 2760 Bull Call Spread strategy at cost of around 36 points that is max risk and BEP 2696 and max reward of 64 can be generated in this strategy.
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