Check out the trends in the derivative segment with Chetan Jain, Asst Manager Derivatives Desk at Anand Rathi for select stocks such as BHEL, Tata Steel, TCS, Tata Global and SunTV:
Smartinvestor : Markets seem to be consolidating at current levels after sharp gains last week. However, the Nifty has slipped below 6,150 in late noon trades. What strategy should traders adopt for the benchmark index for May futures expiry?
Chetan Jain : Nifty NIfty after a strong run is now witnessing some profit booking from higher levels and has entered into consolidation phase with moving in a range od 6100-6200 levels. TIll the time it is trading in this range no directional view can be taken breaching either side range may give further directional move of 100-150 points. To paly with this range bound move one can go with short strangle strategy with selling 6100 put@50 & selling 6200 call@35 ; UBEP 6285 ; LBEP: 6015. On expiry basis if it remains in htis broader range then this strategy will be in profit and max profit will be earned is 85 points it expires between 6100-6200 zone.
Smartinvestor : BHEL seems to be in an uptrend from Rs 190 levels since last week. The stock has firmed up today despite the sluggish market conditions. Is the uptrend likely to continue and what strategy should investors adopt for May options?
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