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B. Venkatesh

THE following strategies are based on Friday's trading in the derivatives segment on the NSE.

The strategies are constructed to take advantage of short throwbacks in futures prices. The position may run counter to the primary trend. Protective stops are, hence, important.

If futures price gaps up on Monday to trade 2-3 points above the recommended entry price, traders should enter the position after the price breaks above the 5-minute high. The position is typically valid for two trading days.

However, considering the high underlying volatility, it is best that the position is closed by end trading Monday. The targets are accordingly placed near the recommended entry price.

For this reason, it may not be optimal to set up options-based positions as alternative strategies.

Reliance Industries: Buy April futures after it trades above 529. The upside target range is 534-537. Place a protective stop at 525 or at the day's low at the time the position is initiated.

The minimum order size is 600 units. The open interest position as a percentage of the market-wide limit is about 15 per cent.

ONGC: Buy April futures after it trades above 842.50. The upside target range is 852-856. Place a protective stop at 838 or at the day's low at the time the position is initiated.

The minimum order size is 300 units. The open interest position as a percentage of the market-wide limit is about 10 per cent.

Nifty futures: Buy April futures after it trades above 1936. The upside target range is 1947-1955.

Place a protective stop at 1932 or at the day's low at the time the position is initiated. The minimum order size is 100 units.

(The opinion expressed in this column is based on technical analysis. There is risk of loss in trading.)

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