FUTURES & OPTIONS

Ahead of the settlement week, derivative segment continued to witness brisk trading activity. Sector rotation is likely to continue further. Track rollovers to spot winners of new series. Expect Nifty to rally towards short-term target of 10,600 in the coming weeks.

The key level for trend change remains at recent low of 10,094. Punters tip 10,500 strike call option for unexpected gains.

All the major sectors are supporting the ongoing rally. Sharp renewed buying was seen in IT stocks.

Infosys attracted good buying interest; present rally with intermittent corrections may see Infosys touch `1,300 in next few months.

Range bound activity was seen in banking stocks. However, fallout of amendments to the Insolvency and Bankruptcy Code (IBC) for quicker resolution of NPAs is yet to be gauged.

Importance of private sector banks is reflected in inclusion of InduSind Bank and Yes Bank in the BSE Sensex index replacing Cipla and Lupin. The changes will come into effect from December 18.

Stay overweight in banking stocks, say observers.

Renewed buying was seen in automobile stocks. Ahead of sales numbers, sharp buying was seen in Maruti and Bajaj Auto.

With EVs gaining traction world over, analysts expect key changes in Indian market also. Buy on dips M&M and Maruti.

FMCG companies were in focus as firms cut prices of products after the reduction in tax slab. Stay invested in Marico, Hindustan Unilever, Godrej Consumer and Dabur. Stocks looking good are Apollo Hospital, Colgate Palmolive, Godrej Consumer, GAIL, Kajaria Ceramics, NTPC, Syndicate Bank, Tata Power and Ujjivan.