FUTURES & OPTIONS

Mirroring the strong uptrend in the underlying cash market, derivative segment witnessed brisk trading during the settlement week.

After witnessing a sideways consolidation during the initial part of the week, Nifty futures ended the week up 0.48 per cent at 10,556 with Nifty futures closing at lifetime highs. Rollovers for Nifty were higher in terms of percentage as well as total open interest compared to last month and last threemonth average.

Among Nifty Call options, the 10,700- strike call has the highest open interest and on put side 10,300- strike put has the highest open interest.

Techies forecast that the breakout indicates Nifty may make an attempt to rally towards the 10,610 levels, while 10,450 is support zone.

Realty, Telecom, Metals and Pharma sectors were in limelight. Telecom space was buzzing with Jio’s decision to acquire spectrum, mobile- phone towers and fiber assets of RCom. Use the present bulge to exit from R Com to re- enter at lower levels after management unveils future course of the company. Buy Idea for short term gains.

Select pharma stocks are attracting good buying interest. Buy DRL, Sun Pharma and Granules.

Technology stocks are back on the shopping list of funds. Use corrections to add Infosys, Wipro and HCL Tech. Renewed buying were seen in metal counters. Stay invested in Hindalco, JSPL and Vedanta. Auto stocks would also be in action. Buy Maruti, Tata Motors, M& M and TVS Motors.

Other stocks looking good are ACC, Bharti Airtel, Berger Paints, Colgate, Equitas, GMR Infra, Idea, IDFC Havells, JSW Steel, Jain Irrigation, Titan Inds and Tata Power.