FUTURES & OPTIONS

The settlement week witnessed brisk and volatile trading in the derivative segment. After trading weak for better part of the week, Nifty Futures staged good rally on the first day of new series. Nifty Futures ended the week 1.34 per cent lower at 10,689, ending its fiveweek winning streak, while Nifty Bank Futures closed 1.71 per cent lower at 26,330.

On the options front, the maximum open interest in put options is at 10,600 strike and maximum open interest in call options at 11,000 strikes. The PCR OI for the week closed up at 1.06 which indicates OTM put writing. India VIX ended the week 7.65 per cent higher at 12.93. On the technical front 10,60010,650 spot levels is strong support zone and current trend is likely to continue towards 10,750-10,775 levels. Crossover of 10,775 levels with good volumes may propel Nifty closer to its all-time high, say punters.

On the back of weak rupee, technology stocks witnessed good buying interest. Forex gains may see the tech biggies report good Q1. Use corrections to buy Infosys, HCL Tech and TCS.

PSBs continued to be on weaker wicket on fears of yet another wave of NPAs in Q1. Private banks continued to remain resilient.

LIC is expected to invest up to `13,000 crore in several tranches in IDBI Bank. Insurance regulator Irdai approved LIC’s plan to buy 51 per cent stake in IDBI Bank subject to some conditions. Contrarians can start accumulating PSBs with long term view.

Ahead of Q1 results, stock specific action will remain the flavor of next few weeks. Stocks looking good are Bata India, Dabur, Exide Inds, Godrej Inds, Lupin, Kotak Bank, Tata Elxsi and Torrent Pharma.