Check out the F&O trends in select stocks such as Infosys, Tata Motors, DLF, IDFC and Tata Power with Navneet Daga, Derivative Analyst at KR Choksey Securities:
SmartInvestor : Markets have come off their record highs in noon trades with the Sensex managing to hold above 26,000 mark as of now. The Nifty is also trading firm above 7,750 levels. What is your advice to traders in this eventful week for Nifty July options?
Navneet Daga : Well Nifty still looking good for more upside, intraday correction need to bought into, traders should keep strict watch on levels of 7650 as its stop loss levels for longs. Strong leadership sectors like IT and Pharma is visible suggesting markets could remain strong. Traders can Initiate 7700 long straddle for july series, ahead of the event VIX is likely to bounce and options premium is likely to go up.
SmartInvestor : Infosys is active ahead of its first quarter earnings to be announced on Friday. The stock has registered contracts at strike prices between 3,200 - 3,600. What is your strategy for the IT major for July options?
Navneet Daga : Infosys is trading strong, ahead of its earnings implied vol’s trading nearly to 42 levels for ATM options, suggesting big move can be expected on result day. Hint of short covering is visible in options of 3250 calls some unwinding is visible. Traders can look to buy covered call in infy with buying futures and hedging against 3500 call options sell, keeping downside stop at 3230 and upside target of 3500 levels.
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