ET NowIn a chat with ET Now, Anand D Shendge, Derivative Analyst, Nirmal Bang Securities Pvt Ltd, shares his views on the market and some stocks. Excerpts:
ET Now: First a word on the index. What are you doing on the index for this expiry and a call on how are you taking forward trades into the next series?
Anand D Shendge: If you see the index, the broader view it is the bullish trend is going to continue till Lok Sabha elections, which are due in May. Right now the Nifty is at 6,650 levels. If you take yesterday’s data, the highest entire build up was at 6,400. Now it has shifted to 6,600.
So, I expect this expiry around 6,650. With this, the bullish trend is going to continue and the market can see the levels of 6,750-6,800.
ET Now: Run us through what looks attractive and what strategies you would advise within the auto basket.
Anand D Shendge: In case of auto, Mahindra & Mahindra is very lucrative. It has shown some correction in the last few sessions. Then I have seen some positive development on option front.
So I have given a buy and one can buy next series Mahindra & Mahindra Future at Rs 980 level, for a target of Rs 1020 and having a stop loss of Rs 960.
ET Now: What else is the strategy, maybe not for the current expiry but for the April series?
Anand D Shendge: For April series for the Nifty, what I suggest is buy 6,650 call which is trading around 141 level. If you see some correction in Nifty and if you get an opportunity to buy it again at 100 level, then you should definitely buy it. The effective cost would be around Rs 120. So you can have a target of Rs 200, with a stop loss of Rs 80.
ET Now: Run us through some other strategies that you may have within the IT space given the kind of moves that we have seen for some of the front liners as well?
Anand D Shendge: I suggest to stay away from the IT space. Instead of the IT space, if you see the banking things, again for Bank Nifty also there is some tight range, but if you see some particular stocks like SBI, Axis Bank, these are very lucrative levels to get in.
So for SBI I have given a particular strategy, that is buy Rs 1850 call at Rs 63. With that you have to sell Rs 1,950 call at Rs 31. For this strategy you will have a breakeven at Rs 1,182 level. In this strategy, the maximum profit possible is around Rs 8,500 and the maximum loss possible is Rs 4,000.
ET Now: What about HDFC?
Anand D Shendge: In case of HDFC also, HDFC is trading around the Rs 870 level. Then again on the option front, I have seen increase in implied volatility of highest price, plus writing off put options at the money strike.
All these things show very bullish indication for HDFC. So I have a first target of around Rs 890. With this particular view, I have given buy Rs 880 call at around Rs 29.50 or Rs 30 with a first target of Rs 40 and the next target Rs 46, having a stop loss of Rs 24.
ET Now: First a word on the index. What are you doing on the index for this expiry and a call on how are you taking forward trades into the next series?
Anand D Shendge: If you see the index, the broader view it is the bullish trend is going to continue till Lok Sabha elections, which are due in May. Right now the Nifty is at 6,650 levels. If you take yesterday’s data, the highest entire build up was at 6,400. Now it has shifted to 6,600.
So, I expect this expiry around 6,650. With this, the bullish trend is going to continue and the market can see the levels of 6,750-6,800.
ET Now: Run us through what looks attractive and what strategies you would advise within the auto basket.
Anand D Shendge: In case of auto, Mahindra & Mahindra is very lucrative. It has shown some correction in the last few sessions. Then I have seen some positive development on option front.
So I have given a buy and one can buy next series Mahindra & Mahindra Future at Rs 980 level, for a target of Rs 1020 and having a stop loss of Rs 960.
ET Now: What else is the strategy, maybe not for the current expiry but for the April series?
Anand D Shendge: For April series for the Nifty, what I suggest is buy 6,650 call which is trading around 141 level. If you see some correction in Nifty and if you get an opportunity to buy it again at 100 level, then you should definitely buy it. The effective cost would be around Rs 120. So you can have a target of Rs 200, with a stop loss of Rs 80.
ET Now: Run us through some other strategies that you may have within the IT space given the kind of moves that we have seen for some of the front liners as well?
Anand D Shendge: I suggest to stay away from the IT space. Instead of the IT space, if you see the banking things, again for Bank Nifty also there is some tight range, but if you see some particular stocks like SBI, Axis Bank, these are very lucrative levels to get in.
So for SBI I have given a particular strategy, that is buy Rs 1850 call at Rs 63. With that you have to sell Rs 1,950 call at Rs 31. For this strategy you will have a breakeven at Rs 1,182 level. In this strategy, the maximum profit possible is around Rs 8,500 and the maximum loss possible is Rs 4,000.
ET Now: What about HDFC?
Anand D Shendge: In case of HDFC also, HDFC is trading around the Rs 870 level. Then again on the option front, I have seen increase in implied volatility of highest price, plus writing off put options at the money strike.
All these things show very bullish indication for HDFC. So I have a first target of around Rs 890. With this particular view, I have given buy Rs 880 call at around Rs 29.50 or Rs 30 with a first target of Rs 40 and the next target Rs 46, having a stop loss of Rs 24.
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