Web Special: Stocks to avoid at the current levels

Check out the latest trends as per the the F&O segment with Nandish Patel, derivative analyst, Sharekhan

Check out the latest trends as per the the F&O segment with Nandish Patel, derivative analyst, Sharekhan



Smartinvestor: How do you see the markets panning out as we approach the calendar year end and the F&O expiry this week?

Nandish: Last Friday around 3.00 lac shares were added in open interest with a significant decrease in the cost of carry & shrinking the premium from 18 points to 5 points clearly indicating fresh short positions are building in market.

VWAP on other hand is around 5930 levels indicating that this level will act as hurdle. On the contra side my view remains intact & I feel 5800 on closing basis would act as a good support for this expiry & for current year as well.

Smartinvestor: Are there any key trends that you can highlight based on the rollovers (stocks and sectors) seen till now?

Nandish: Rollover is in-line with the expectation & we had seen around 40% rollover as of now. As there is one day short this time in expiry week I think the there might be sharp volatility going ahead.

Smartinvestor: Most information technology stocks are trading higher today. What are the key support and resistance levels for the CNX IT? What about individual stocks like Infosys, TCS and Wipro?

Nandish: All these stocks remain in the buy bet. I will avoid going long in TCS as the volatility is not justifying the overall movement but Wipro continue to remain among the best bet at current levels & can be bought for targets of 430-450 for Jan series.



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