OPTION
We have a cautiously bullish view on Infosys . We recommend Synthetic Collar strategy:
o Buy One Infosys Oct fut @ 1988-1992
o Sell Two Infosys Oct 2130 CA @ 43-45
o Buy One Infosys Oct 1980 PA @ 76-80
o BEP: 1980
o Tgt: 2150
o Investment: Rs.1,00,000 (Approx)
o Time Frame: 7-8 days
FUTURE
ACC Sell 1130-1140 1152 1075-1080 3-4 Days
1.) SAIL: SAIL have witnessed closure of long position in yesterday’s trade; the stock futures have shed 4.30% in
open interest along with decrease in cost of carry from 9.44% to 5.57%. Short position can be assumed in the stock
in the range of 195-198 with a stop loss placed at 200 levels.
2.) Tata Steel: Tata Steel 5 lakh shares in open interest and turned into discount of Rs.1.5 points indicating
unwinding of long positions. The stock has closed below 800 mark for first time in last five trading session. Short
position can be assumed in stock with a final stop placed at 810 for downsides of 770 and 745 levels.
3.) STER: Sterlite Industries has shed 3% on yesterday trade on account of closure of long position. The stock has
shed close to 4.48% in open interest along with significant fall in cost of carry from -5.63% to -19.46%. The
resistances for the stock are placed at 750 and 765 levels while supports are at 720 and 705 levels.
4.) Infosys: Infosys witnessed positive close in spite of sell pressure in the market. Infosys has seen slight closure
of short position before it announces it Q2 results on Thursday. Long position can assumed in the stock if sustains
above 2000 levels for upsides of 2025 and 2050 levels.
5.) Reliance: Reliance Oct futures have seen no significant change in open interest. The stock has good support at
2390 levels. Long position can be assumed in stock in region of 2400-2410 with a stop loss placed at 2390 for
upside of 2435 and 2450 levels.
6.) SBI: SBI has shed 3.73% in open interest on the back of shrinking cost of carry implying long closure. Short
positions may be taken in the stock with a stop loss placed above 1800 levels for targets of 1680-1700 levels.
7.) ICICI Bank: ICICI Bank had witnessed a sharp run up in the recent sessions following which it witnessed profit
booking at the similar pace. It shed a whooping 7.80% of open interest in just yesterday’s trade. Short positions may
be taken in the stock from slightly higher levels with a stop loss placed above 1065 levels for lower targets of 980-
1000 levels.
8.) DLF: DLF witnessed sharp declines in yesterday’s trade and has shed 13.46% in open interest. Short positions
may be assumed in the stock below 835 levels for immediate targets of 790-800 levels with a stop loss placed above
850 levels.
9.) Hindalco: The entire metal pack had been witnessing selling pressure. Hindalco has witnessed addition of short
positions indicated by the increasing open interest on the back of negative cost of carry. Short positions may be
taken in the stock from 164-166 levels with a stop loss placed above 168 levels for downsides of 155-158 levels.
10.) M&M: M&M had witnessed closure of positions as it shed 4.27% in open interest. Short positions may be
assumed in the range of 730-735 levels for downside targets of 695-700 levels. The same shall be protected with a
stop loss placed above 750 levels.
Market View:
Nifty opened on a positive note yesterday following the strong
global cues . However, the index pared all its gains as it
witnessed immense selling pressure. The last hour saw some
amount of recovery but failed to sustain the 5100 mark and
closed below it. Selling pressure was seen across the board
indicated by weak market breadth at 134:1015. Nifty Nov
futures premium has converted into a discount 6 .90 points with
no significant change in open interest. Majority of stock futures
have seen unwinding of long positions; the total market open
interest has decreased by 5.34% along with decrease in
average cost of carry from 5.66% to 1.71%. On the options front
put options have seen short closure while calls have seen short
accumulation suggesting that selling may continue in the near
term . The markets are likely to open on a flat note today;
traders are advised to assume short positions if Nifty fails to
cross and hold above 5140 levels for targets of 5020 and 4980
levels. Alternatively, they may assume intraday long positions
above 5140 levels for targets of 5170 and 5220 levels