Check out the trends in the derivative segment in select large cap stocks such as ICICI Bank, Infosys, Tata Motors, JSW Steel, L&T with Nandish Patel, derivative analyst at Sharekhan:
Smartinvestor : Markets have extended gains in late morning deals and the Nifty is trading well above 6,000 levels as of now. What is your call on the Nifty for May options and the strategy for the same?
Nandish Patel : The recent low of 5950 levels is a very good support & if Nifty, manages to surpass 6050 levels in future today with a good participation, than we may see momentum buying & short covering. From expiry point of view we feel that the volatility will be extremely high but on higher side 6100 to 6150 levels is what I will be looking for. One can buy 6000 strike call with a stoploss of 30 & expiry targets of 100 to 150.
Smartinvestor : ICICI Bank is among the most active stock in the options segment at strike prices of Rs 1,100-1,200 both in the put and call side. What strategy should investors adopt for May options expiry?
Nandish Patel : Overall banking stock is been outperforming since last expiry. We have seen huge selling in public sector bank SBIN but private sector banks were holding firm. From the current levels still I feel there is much scope to play onto long side. ICICI bank has a good setup on option side & any move above 1200 can take this counter towards 1225-1240 levels. I also prefer HDFC Bank at the current levels to play on the long side.
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