Title: Top F&O Shares to Watch Out for in 2021

Section 1: Introduction to F&O shares

Subtitle: Understanding the Basics of Futures and Options Trading

Futures and Options (F&O) trading is an essential derivative trading instrument that allows investors to trade in the future price of stocks, indices, and commodities. In simple terms, it gives the investors the right to buy or sell the underlying asset in the future at a predetermined price. F&O trading has become increasingly popular among investors as it allows them to take advantage of price fluctuations in the market without actually owning the underlying asset.

In F&O trading, there are two types of contracts: Futures and Options. The futures contract obligates the buyer to purchase an underlying asset at a future date at a predetermined price. Whereas, an options contract gives the buyer the right, but not the obligation, to buy or sell the underlying asset at a fixed price within a specified period. F&O trading requires a high-risk appetite and extensive knowledge of the market, making it an even more challenging task for beginners.

Section 2: Top F&O Shares to Watch Out for this Year

Subtitle: Analyzing the Market Trends and Prospects

1) Reliance Industries Limited (RIL)

Reliance Industries Limited is a market leader in the Indian petrochemical market and has diversified into various other sectors. It is one of the most actively traded F&O scrips with a significant weightage in Nifty50. The company has seen an upward trend in the last few months due to its expansion in various sectors such as telecommunications and digital services.

2) Tata Consultancy Services (TCS)

Tata Consultancy Services is a leading name in the Indian IT industry and has a strong global presence. It is known for its robust financials and consistent growth in the market. TCS has been one of the most consistent performers in the F&O market, and it is expected that the trend will continue this year.

3) Bharti Airtel Limited

Bharti Airtel Limited is India’s second-largest telecommunications company and has a vast subscriber base. The company is focusing on expanding its digital service offerings, which makes it a hot F&O pick. The F&O market has been bullish on Bharti Airtel Limited in recent times, and it is expected that the momentum will continue this year.

4) HDFC Bank

HDFC Bank is one of the most trusted names in the Indian banking industry and has consistently outperformed its peers. The bank has a stable deposit base, robust asset quality, and strong financials, making it an attractive pick for F&O traders.

5) Infosys Limited

Infosys Limited is one of the leading global IT services providers based in India. The company has seen consistent growth in its revenue and profit margins, making it one of the top F&O picks this year. Infosys Limited’s excellent performance in recent times has made it one of the investors’ favorite choices.

Section 3: Conclusion: Pros and Cons of F&O trading

Subtitle: Weighing the Risks and Rewards

F&O trading can be a challenging task, but it offers investors the opportunity to maximize their profits. The primary advantage of F&O trading is that it allows investors to trade with leverage. However, trading with leverage can amplify potential gains and losses.

The significant risk associated with F&O trading is the high level of volatility. The market fluctuations can lead to significant losses and should be carefully monitored. The investors should also be aware of the margin requirements and the risk associated with it.

In conclusion, F&O trading can be a lucrative option for investors if done correctly. It is crucial to have extensive market knowledge and risk management skills. The top F&O shares mentioned above are just a few examples of the numerous trading instruments available in the market. Investors should conduct thorough research before investing in any F&O share.