The latest analysis and commentary by stock market guru Amit Gupta of ICICI Direct on what is moving the markets today.

He also spoke at length on State Bank of India (SBI) & Hindalco.

Speaking about F&O strategies Amit Gupta said, “First trade is State Bank of India (SBI), if you look at the current divergence between SBI and the other PSU banks it is really high. The open interest in SBI has come down from 90 million shares to 60 million shares in the last 3-4 months and the stock has remained near Rs 300 levels. So that means shorts are getting close like anything and the stock is making a base near Rs 300. The second stock that we are picking is in the short side which is Hindalco. Metals are seeing corrections. Hindalco has seen some pullback towards Rs 205-206 because of the novelist results but then afterwards it has again breached that particular low of Rs 198 and this addition is coming now. Rs 210 was the highest but now 200 Call option has seen almost 30 percent increase in OI so my sense is Hindalco may see a fall from these levels. It can fall towards Rs 180 so this may be a shorting candidate in this market.”

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