FUTURES & OPTIONS

Mirroring the weakness in cash segment, derivative segment witnessed selling on every ruse.

In the option segment highest open interest was seen at 8300 strike in calls and 8000 strike in puts.

Low cost of carry indicates weak trend in near term.

With several sectors trading below or near their 200-DMA, punters were seen shorting on every bounce.

Barring mild buying interest in Autos, Capital Goods and FMCG, all other sectors closed in red.

Ahead of the Reserve Bank of India’s policy meet and burdened by the ongoing demonetisation exercise, weak trend was seen in banks.

Contrarians suggest gutsy buying in the present correction with medium term view.

Renewed buying was seen in select power stocks.

Stay invested in Tata Power and Adani Power.

Spike in crude oil prices triggered buying in ONGC and GAIL. Stay invested for present.

Resilient metal stocks witnessed profit booking during the week ended. Buy at lower levels Hindalco and Hind Zinc.

Weak trend in precious metals may continue for some more time say industry watchers.

Track global cues like Italy referendum and United States Federal Reserve outcome.

Stocks looking good are Ajanta Pharma, Bharat Electronics Ltd (BEL), Ceat, GAIL, ONGC, Ultratech, Maruti, Tata Power and United Phosphorous.