Watch the interview of Amit Trivedi, Investworks.in with Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on Futures and Options (F&O) side of the market, specific stocks and sector.
ICICI Bank and Tata Motors have done well in this series, moved around 7-8 percent; ICICI Bank moved from Rs 340 to Rs 365. We think this level should hold on. Therefore, we are suggesting selling 340 strike Put option of ICICI. You are getting close to Re 1 which is Rs 1,200 on margin deployed of 30,000. You will make Rs 1,000 if ICICI remains any value above Rs 340 and you have five days to expiry. So that is a good risk reward ratio."
"Similarly, Tata Motors has rallied quite a bit, so we think it should consolidate and we recommend selling 510 strike put Options of Tata Motors again getting closer to Re 1 in this trade and you get that Re 1 if Tata Motors expires any value above Rs 510.
All IT companies are doing reasonably well except Tata Consultancy Services (TCS). Infosys, HCL Technologies and Wipro have rallied whereas TCS has corrected after results. We think this stock should consolidate or maybe marginally move up,."
"The trade we are suggesting is to buy Call ladder, which is if you buy 2,500 at the money strike Call of TCS, you sell 2,550 strike calls and 2,600 strike calls. You are investing Rs 11 in this trade and if TCS moves Rs 11 which is Rs 2,511 to around Rs 2,640, any value TCS remains, you will make money. Only if TCS crosses Rs 2,641 you will start making losses which is approximately Rs 140 from current price.
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