FUTURES & OPTIONS

The derivatives segment witnessed brisk trading with negative bias.

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

After testing crucial support of 9,270, Nifty closed marginally lower. Heightened volatility was seen within the band of 9,250-9,375 Nifty band.

Maximum open interest in call has shifted to 9,400 strikes from 9,500. In the coming week, Nifty is likely to oscillate between 9,200-9,400.

Bank Nifty relatively outperformed, gaining 1.10 per cent on weekly closing basis. Maximum open interest was seen at 22,000 put and 23,000 call strikes.

Techies say that Dragon Fly Doji was created on Thursday followed by a bearish engulfing candlestick pattern on the daily chart on Friday are all indications of uncertainty. Stay cautious and avoid large positions say old timers.

Going ahead with the amendment to the Banking Regulation Act for addressing the problem of stressed assets in the banking system that have reached “unacceptably high levels”, the GOI has showed willingness to undertake tough reforms.

Stay invested in PSU banks and use corrections to buy low priced banks like Andhra Bank, Syndicate Bank and others.

On the back of fall in crude oil prices, metals also witnessed sharp profit booking.

The Cabinet approved National Steel Policy, under which priority will be given to Indian steelmakers in government tenders for infrastructure projects. Use declines to buy Tata Steel, JSPL and JSW Steel.

Punters suggest contrarian buying in IT stocks. Buy TCS and Wipro with 2 to three months horizon.

C. Kutumba Rao is an avid follower of stock markets. This newspaper is not liable for decisions made on the basis of this column. Views expressed in the article are personal views of the writer.