Expert tips to play the F&O expiry today

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Expert tips to play the F&O expiry today

Hemant Thukral advises to wait till afternoon if one wants to go long. At 5300, you will see long support coming in

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

The market has turned extremely volatile ahead of the futures and options (F&O) expiry. Hemant Thukral of Aditya Birla Money attributes yesterday's fall to rollover pressures. "Very clearly, the rollovers picked up and lot of positions got squared off on the long side. No major fresh shorts were created." He said people were sitting with too much long positions and booked profits the moment first correction came in. He sees continuation of the selling pressure due to outstanding long positions. Thukral says March series rollovers are happening on the long side. The rollover cost is still very bullish, and there isn't any danger in the March series right now.

Speaking about the sharp decline yesterday, Abhijit Paul, technical analyst at Brics Securities said the everybody was waiting for a correction after a seven-week rally, but nobody expected largecap banking stock like SBI to fall 8% in a single day. "My sense is that we are going to drift a little further down probably for a test of 5400 on the down side, that's where the next level of supports are."

Strategy for today
Paul's strategy today will be to let this day go and look in the fresh expiry tomorrow and get into fresh longs or look to add shorts. On the other hand, Thukral advises to wait till afternoon if one wants to go long. "If you see selling pressure coming in, go long because highest puts are piled at 5300-5200 levels, he said. "At 5300, you will see long support coming in and the Nifty may retest 5600-5650 again on the upside," he said.

Watch the accompanying video for the full interview