FUTURES & OPTIONS

Ahead of the assembly elections outcome derivative segment witnessed range bound activity with stock specific action.

Surge in volatility was attributed to speculation over assembly results.

Movement in VIX and open interest suggests short term rally.

In Nifty options segment, on the call side the 9000-strike call has the highest open interest and on the put side 8800-strike put has the highest open interest.

Political stability is the most important for any country as it gives confidence to foreign investors & companies and helps the government to implement policies smoothly like GST.

Adopt buy on dips’ strategy for a near to medium term perspective.

Renewed buying interest was seen in IT and Auto counters. Buy on corrections TCS, Infosys, M&M and Tata Motors.

Modest buying was seen in bank stocks. Stick to private banks say industry observers.

Fears of assembly election promises of loan waiver of farm loans in Punjab and UP casting shadow on PSU banks may dampen sentiment.

Better than expected IIP figures have triggered buying interest in Capital Goods and FMCG. Stay invested for present.

Profit booking was seen in metals and pharma stocks.

Stocks looking good are Adani Power, Bata, Godrej Inds, Hero Motocorp, JSPL, Justdial, KSCL, L&T Finance, RIL, TCS, Voltas and Zee Entertainment. Trading Mantra: Don't let emotions control investment decisions. One of the best ways to eliminate impulsive trades is to create a plan and write a list of rules. Then look at those rules before buying or selling a stock.