FUTURES & OPTIONS

Ahead of settlement week, the derivative segment witnessed brisk trading. Sentiment indicators like VIX, open interest, put/call ratio and implied volatility suggest mild correction in near term.

Highest open interest in the option segment was seen at 10,700 call strike and 10,500 put strike. Nifty range of 10,400-10,700 levels is predicted for the near future.

For Bank Nifty Futures, the highest open interest is placed at 25,500 call strike and 24,000 put strike. Track rollovers to spot possible winners of next series.

FMCG, Metal and IT counters were biggest gainers, rising 4-5 per cent while PSU Banks lost the maximum. Reporting healthy earnings and good outlook for FY19, TCS triggered rally in IT stocks. Use declines to buy TCS, HCL Tech and Wipro.

Aluminium and Nickel are leading the rally in base metals at LME with gains of 14 per cent and 19 per cent in last three months. Outlook looks good for both ferrous and non-ferrous industries. Buy on declines Hindalco, Vedanta, Tata Steel and JSW Steel.

With crude oil prices surging to three year highs, OMCs are on weak wicket. Mild weakness to continue for some more weeks, say watchers.

Bank stocks continued to face selling pressure. Avoid for present.

Apart from petrochemical and refinery businesses, telecom is the major component to look for in results of Reliance.

Results of Maruti Suzuki may give “fizz” to other auto stocks. Punters expect positive news from the management. Stocks looking good are Arvind, DCB Bank, Hindustan Zinc, Motherson Sumi, NALCO, NIIT Tech, Tata Global, Wockhardt and Wipro.