FUTURES & OPTIONS

On the back of bullish undertone in the cash market, derivative segment witnessed brisk trading volumes during the week ended.

Sentiment indicators like implied volatility, put/call ratio, open interest and VIX suggest further gains in coming weeks.

In the option segment, among Nifty Call options, the 10,200-strike call has the highest open interest and on the put side 9,900-strike put has the highest open interest. Technically, if Nifty manages to break past the previous alltime high with volumes, 400 points rally is not ruled out. However, it is very crucial that Nifty stays above the 10,000 support zone.

Bank Nifty is range bound in the 500 points trading range between 24,500 and 25,000 band. Wait for breakout to initiate fresh positions.

Auto, Pharma, Bank and Metal counters were in demand on sustained buying interest.

Modest buying was seen in select banks like BOB, Axis Bank and Andhra Bank. Industry observers expect news driven rallies in select banks. Stay invested for present.

Though buying was seen in Lupin, Divi Labs, Dr Reddy’s and Sun Pharma, developments involving the regulator, USFDA may spook the ongoing rally in pharma stocks. Tread cautiously say observers.

Renewed buying was seen in capita goods counters. Revival in capacity utilisation post GST lull will be reflected in next few months say industry sources.

Buy on declines Amara Raja, BHEL, Voltas and Siemens. Stay invested for further gains.

Other stocks looking good are Adani Ports, BHEL, HCC, Federal Bank, Siemens, TCS, Tata Power, UPL and Voltas.