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Sun, 9 Jul 2017
Market heading for consolidation with negative bias: Navneet Daga, IIFL Investment Managers

Talking to ET Now, Navneet Daga, Head-Derivatives, IIFL Investment Managers, says it would be either a gradual decline whereby we believe that 9900 levels are likely to be touched on the Nifty.

Edited excerpts:

What is the FII activity suggesting on the futures side because while they were net buyers yesterday, they did add protection too?
We have seen a kind of moderation because if you look at the start of the series, we started at a net long futures position from the FIIs around 1.45x kind of a net long contracts but it has actually moderated over a period of time in the last seven to eight trading sessions.

To my understanding, they have seen the kind of a call writing that I have seen on the higher side at 10100 to 10200 level which is making me believe that in the near term there would be a stiff resistance at that level of 10100 to pass on. It would be either a gradual decline whereby we believe that 9900 levels are likely to be touched on the Nifty. But gradually it is looking likely that it would be more of a consolidation with a negative bias.

From a trading perspective, I will look for shorting opportunities and that is available in the likes of DLF. We have seen a huge amount of addition at the OTM puts of 170 to 175 levels odd and in fact, I was surprised to see almost 200 point jump in the open interest in 170 puts for DLF.

I would be basically going short on DLF at these current levels as well and keeping a stop loss of Rs 185 on the higher side and work for a target of Rs 168 within a matter of almost six to seven trading sessions.

Source: The Economic Times





Last updated by: anil.mascarenhas on Mon, 14 Aug 2017 12:21 PM