FUTURES & OPTIONS

Mirroring the bullish undertone in the cash segment, the derivatives segment witnessed brisk trading during the settlement week. Rollover data suggests positive bias in near term.

Sentiment indicators like put/call ratio, implied volatility, VIX and open interest suggest uptrend in near term.

Interestingly, this rollover series witnessed record low close for India VIX at 11 levels; down 8.8 per cent on (eoe) basis.

With no major events lined in domestic market up next week, equity markets are likely to consolidate and trade in band of 9,200-9,400 on Nifty.

In the coming truncated week, Bank Nifty is likely to oscillate between 22,700 and 22,000 range. From option data the probable range of Nifty for this series could be 9,000-9,500.

True to predictions, banks were the flavor of the week. PSU banks attracted strong buying. Further gains indicated in the smaller PSU banks like Andhra Bank, Syndicate Bank, Union Bank.

Renewed buying was seen in automobile space. Buy Maruti, Tata Motors and Motherson Sumi.

On the back of reports of strong off take and surge in prices, concrete buying was seen in cement stocks. ACC, India Cements and Ultratech look good for further gains.

Metals and capital goods are likely to attract renewed buying. Stay invested in the sectors.

Fifteen stocks have been added to the F&O segment with as many as six from financial space. Most of the new entrants have run up already significantly. Wait for correction to make a tactical buy.

Stocks looking good are Andhra Bank, Bharat Financial, Federal Bank, Fortis, Hindalco, GSFC, IDFC Bank, JSW Energy, Suzlon and PFC.