FUTURES & OPTIONS

Amidst heightened volatility, the derivative segment continued to witness brisk trading activity. Highest open interest in the current series is seen at 10,500 strike in index call options and 10,200 strike in index put options.

For Bank Nifty highest open interest was seen at 26,000 call and 25,000 put.

The downside momentum in the market may gain strength if Nifty dips below 10,200 levels.

Any upside bounce is unlikely to hold for next week and Nifty could witness selling pressure on every rise.

Any intraweek upside bounce up to 10,400 levels should be used to exit from weak counters.

Changes in GST rates gave fillip to FMCG counters. Use declines to add HUL, Godrej Consumer and Marico.

On the back of rupee weakness and value buying, renewed interest was seen in technology counters. Buy on declines Infosys, TCS and Wipro.

Rising crude oil prices are likely to affect oil marketing companies. Stay away for present.

From the pharma pack carnage was seen in Lupin counter. Punters expect similar sell off in Sun Pharma in the week ahead if results are not in line with expectations. Expect continued volatility in pharma stocks in near term.

Results from SBI were in line with expectations. Watch inflation numbers carefully, increase will dampen votaries of rate cut.

True to predictions Capital Goods counters are witnessing steady buying. Stay invested for further gains. Stocks looking good are Bajaj Auto, Cholamandalam Finance, HUL, JSW Steel, Kajaria, NBCC, PC Jewelers, Page Inds, Petronet LNG, TCS and Tata Elexi.

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.