Check out the F&O trends in select index stocks such as SBI, Idea Cellular and Dr Reddy's Labs with Chetan Jain, Asst Manager (Derivatives Desk), Anand Rathi:
Smartinvestor : Markets have gained on the first day of January F&O series. Were the roll-overs to the January series better than last month? What strategy should investors adopt if the Nifty tops 6,000 levels in the January series?
Chetan Jain : Nifty was hovering near 5900 psychological mark in Decmember Series with around 150-160 points move and We feel that this consolidation phase is likley to continue in the absence of any directional trigger in the market. One can play range bound move by making Short Straddle Strategy by Selling 5900 Call & Put with toltal premium inflow of around 190 points. UBEP : 6090 ; LBEP : 5710 hence till the time Nifty is trading in this borader range of BEPS strategy will be in profit on expiry basis. Traders can Keep Stop of 260 points on premiums and hold for immediate target of 100-80 levels on premiums.
Smartinvestor : PSU banking major SBI seems to be facing tough resistance at Rs 2,380 level. The stock had corrected from that level on Dec 20 and today also the stock has retreated a bit. What is your call on the stock in the options segment for Jan expiry?
Chetan Jain : Technically is has strong hurdle near abount 2380-2800 psychological mark and any sustainable move above these levels may trgger for fresh breakout and it may head towards 2550-2580 levels on higher side. To play on safer side one can simply buy out of the money call i.e. 2450 call@55 with max risk : 6875/- per lot and Reward can be 3-4 times.
For detailed transcript please CLICK HERE
