Check out the F&O trends in select stocks such as Tata Motors, JP Associates, United Spirits and Arvind with Navneet Daga, Derivative Analyst at KR Choksey Securities:
SmartInvestor : Markets seems to be consolidating after sharp gains in the previous session. The benchmark Nifty continues to hover around 7,700 levels as of now. What is your advice to traders for the Nifty July options?
Navneet Daga : Trend is positive, new highs on index with significant build up at 8000 call options and aggressive put writing on OTM puts suggest more gains likely for the index ahead of the key event of budget. Traders should buy OTM calls of 7800 strikes in nifty, keeping downside stop loss levels of 7650 for futures.
SmartInvestor : Tata Motors is active in the options segment today with contracts at strike prices between 460-480. What is your strategy on the auto major for July options?
Navneet Daga : Autos had seen significant buildup and leading the rally from the front. Tata Motors relative underperformer had seen buildup on long side, stiff resistance near 465 range. Trader can create bull call spread with buying calls of strike 470 calls and selling 500 calls at spread of 10 with target on upside to be at 480 levels in july series.
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