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Experts advise staying away from 34 stocks excluded from F&O

The move, a yearly practice by the exchange, is the interest of retail traders. The removal which is usually based on pre-defined criteria helps in maintaining liquidity in the instrument

April 25, 2019 / 17:17 IST
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Most experts lauded the National Stock Exchange's decision to remove 34 securities from the futures & options (F&O) trading segment after the June expiry and advised investors to stay away from these stocks.

The move, a yearly practice by the exchange, is in the interest of retail investors. The removal, which is usually based on pre-defined criteria, helps in maintaining liquidity in the instrument.

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“Exclusion from F&O can lead to short-term unwinding of arbitrage trades but once that effect wears off, price behaviour should be normal,” Rohit Srivastava, Fund Manager – PMS, Sharekhan told Moneycontrol.

“Investors should stay away from positional trades in the futures as you cannot roll over a position into the future anymore,” he said.