ICICI Direct's F&O strategy for next week

Amit Gupta of ICICI Direct advises to go short on Nifty in 6000 call and put options of May series. He sees 5940 as a very strong support area.

Explaining his strategy for future and options trade he says, "The Call and Put writing both that has brought down the volatility and this is where there maybe some consolidation left in the market till expiry. In that scenario 5940 will act a very strong support area. Till that is held one can go short in 6000 Call and Put Options of May series where the total premium is somewhere around Rs 95-100. So if you are doing that you keep your stop loss around Rs 125 and this strategy will benefit from the decay in the time premiums."
Among specific stocks under, he finds Dr Reddys Laboratory and Dabur India most resilient in the current profit booking market. "Dr Reddys is above Rs 2,075. It is likely to move towards Rs 2,150. So just wait for this level to be taken out and above which we expect some short covering to happen in the stock," he says.
He says Dabur on May 3 had very sharp move from sub-Rs 150 levels to almost Rs 158-159 and then in the last few sessions it has seen some profit booking, it has come down to Rs 155-154 and there it is finding some support. "I am expecting till expiry it can show some more resilience, because whosoever tries to go short in the stock they have all stuck up and it is not falling to that extent. In that scenario it can retest those particular highs of Rs 158 or Rs 159," he suggests.