IT sector looks quiet: Panda

Jitendra Panda, Future Capital is of the view that IT sector has been more quiet and not seeing any action build-up there.

Panda told CNBC-TV18, “This time IT sector has been more quiet and we are not seeing any action build-up there. So we believe it will be more of a quiet movement. What we are recommending is kind of a selling strangle on that. TCS is seeing some lowering of open interest or the open interest has increased, but on the shorter side, so more cautious approach is there. We are not seeing any broader action on the sector per se, the way we saw in the last quarter or the quarter before that. So it will be a quiet affair for the sector, that is the way the actions have build up in the derivatives front now."
He further added, "So what we are recommending is more of a selling of a strangle, out of the money Call and out of the money Put, but then that has to be taken with the element of risk, because you are selling Options, so that is why we are trying to be cautious and go into little offbeat stocks in the sector as Wipro where we are recommending long position."