Analysts’ suggest investors to buy put options if the market opens lower on Monday to hedge their long positions while some are advising clients to remain in cash at least for the next 3-4 days
Sell July 8500 Call at Rs 60 for a target of Rs 30, with a stoploss at Rs 80, said Manoj Murlidharan, Head- Derivatives, Religare Securities.
RBI On Call/Put Options: Assured Returns? Yes!
The RBI has prescribed a new pricing regime applicable to foreign investor exits using Call & Put options. And while it‘s not our case that equity should get assured returns, a dual pricing regime is confusing and in some cases unfair.
The notification allows for shares and convertible debentures to have such optionality clauses- that is the most important piece of news and that is definitely good news.
There are a variety of ways in which one can go long, but one should take a positioning for the next few days, says technical analyst Sudarshan Sukhani, s2analytics.com.
In the December series, Nifty is likely to hold 6,030-6,050, Hemant Thukral, Aditya Birla Money said.
F&O Cues: Nifty 6000 Put shed 13 lakh shares in Open Interest and Nifty 6100 Put shed 10 lakh shares in Open Interest on Tuesday.
SEBI's recent notification will hopefully reassure investors and open the door to more funding for SMEs
There is a saying: amateurs open the markets and professional close it. That clearly has been the case over last two days. On Monday, the markets opened gap down and closed at day‘s high.
The bulls are betting that the recent rally has captured most of the good news on QE tapering, and that even if the US Fed takes a dovish stance, the Nifty will find it tough to cross 6000 in this series.
VK Sharma recommends buying ICICI Bank at 860 Put if the stock breaks below Rs 860. Also, for IndusInd Bank he suggests buying 360 Put at around Rs 16 keeping a stop loss at Rs 12.
Amit Gupta, Head- Derivatives -ICICI Direct told CNBC-TV18 that On the downside Nifty could test 5680 and 5800 on the higher side. He recommends short covering
Amit Gupta of ICICI Direct believes that if the Nifty closes the week below 5800 then market may have a problem for further three-four weeks as well.
The direction of the markets can surprise the most experienced of investors and if the direction is opposite to the derivatives position you hold one loses a whole lot of money, but if one did not invest and the market moved in favour then a great opportunity is lost. The answer to this puzzle lies in strategies like ratio spreads, ladders etc.
FDI Policy: Call & Put Confusion Persists!
According to Thukral, options pricing gets decided on two parameters: 1) intrinsic value and 2) time value.
VK Sharma of HDFC Securities sees rupee pulling down all the companies that have foreign exposure and that will take the market down further.
In an interview to CNBC-TV18, Karun Mutha, HSBC Invest Direct shared his outlook on the F&O market. According to him Nifty at 5,900 levels is a good area to accumulate for a small rally.
V K Sharma of HDFC Securities advises buying Puts in Reliance Power. "Keep a stop loss of Rs 2-3 and hope to sell this at around Rs 15," he says in an interview to CNBC-TV18.
Hemant Thukral suggests to keep a stop loss of 6,165 and targets of 6,250-6,270 on NIfty if one wants to go long.
Vivek Gupta of BMR Advisors says, in an interview to CNBC-TV18, Sebi‘s reversing its view on put-and-call options by issuing a circular is the fastest mechanism to implement the amendment.
In an interview to CNBC-TV18, Amit Trivedi, co-founder, Investworks.in shared his reading and outlook on the F&O market. He expects Nifty to consolidate in the broad range around 5,900-6,100 for next few weeks.
Tushar Mahajan, Head of listed Futures & Options-India, Nomura believes a runaway rally caught a lot of investors by surprise. According to him, yesterday when there was a massive selloff on Options, it actually reiterated the fact that the market was going to hold up.
After the CCI's nod for the USL-Diageo open offer, the two companies are trying to rush the approval process with Sebi. USL-Diageo have responded to Sebi's final observation's on the open offer and sources say Sebi's clearance may come in soon, reports Kritika Saxena of CNBC-TV18.