Back to Chat Page
On F&O Strategies
 |
Shshank Mehta
Derivatives Strategist, Shah Investor's Home LtdDate : 04 Jul 12 | 10:00 AM |
| Smartinvestor : Hi, this is Puneet Wadhwa and we have Shshank Mehta, derivatives strategist, Shah Investor's Home back with us for the Talk Show today morning |
| Smartinvestor : Good morning Shshank and welcome back |
| Shshank Mehta : Morning! Puneet |
| Smartinvestor : The markets have opened on a cautious note today, though with a positive bias. What does the F&O data indicate regarding where we might be heading over the next few sessions? |
| Shshank Mehta : The broad trend remains positive with Call writers seen active only at higher strikes, in contrast to this Put writing is seen across strikes pushing the PCR (Put-Call Ratio) to 1.3+ levels. There may be some intermediate cool-off however we believe buying on dips will be prudent as Nifty will test 5400 levels in the days to come. |
| Smartinvestor : The BSE Metal index is among the top gainers today. What is your view on this space, especially stocks like Sesa Goa, Jindal Steel and SAIL? |
| Shshank Mehta : SAIL and SESAGOA are showing signs of Fresh Longs with Open Interest increasing (expiry-to-date) by 4% and 6% to 17.06 and 13.95 mn units. We believe they will remain in positive territory with upside seen till 102 in SAIL and 210 in SESAGOA. Traders with bearish view should initiate short positions only on a deciseve close below 88 and 185 respectively. However, JINDALSTEL is in negative territory and traders with a bullish view should initate long positions only if the counter closes above 472. |
| Smartinvestor : Most auto companies have come out with the June sales figues. How should one play this space? What does the options data suggest regarding Maruti Suzuki, Tata Motors and Ashok Leyland? |
| Shshank Mehta : MARUTI is seeing fresh longs with Futures Open Interest (expiry-to-date) up by 6%; TATAMOTORS saw a 12% rise in its Open Interest to 27.84 mn units; however, traders with a bullish view in TATAMOTORS should initiate long positions only a decisive close above 241.50. I do not track ASHOKLEY; however, we observe that it has gathered momentum and may test 25.80 levels with support at 23.60 on the downside. |
| Smartinvestor : Thanks, Shshank for your time and advice. Please give us your disclosures (if any) |
| Shshank Mehta : We may have positions in the above mentioned counters or may have recommeded the same to our clients. (Nifty strategy suggested by during last week's conversation with respect to a short straddle at 5300 -- sell 5300 CE and 5300 PE -- close in-the-money at a profit of Rs16). |
| Shshank Mehta : Thank you for allowing me share our views with traders and investors. |
| Shshank Mehta has logged out at 04-Jul-2012 10:32:01 am |
| Smartinvestor has logged out at 04-Jul-2012 10:32:04 am |
Reply to the Message
(Max. 1000 characters)
(Word verification is case-sensitive)