indices closed near four-month lows

BSE Sensex (18860.44) and Nifty (5654.55) closed down 4.20% and 4.21% respectively last week.Nifty Future January was quoting at 9.50 points discount.Nifty call option January 5800 was very active.Support for Sensex is at 18175. Resistance for Sensex is at 19500 .Support for Nifty is at 5470 and resistance at 5820..
RBI will review the monetary policy on 25th January 2011.TCS,Essar Oil,BHEL,Petronet,GAIL,Biocon and Wipro will declare their quarterly result next week.
SBI and ICICI Bank added Open Interest in January series.Huge position was build up at SBI January Call Option Strike Price 2600.Good build up was also seen at Tata Steel January Call Option Strike Price 640.
Strategy for Futures Option players.

1)Power Grid(97.60) Lot Size-2000 Shares
Buy One Call Option of January Strike Price 95@ 2.75Rs
Sell One Call Option of January Strike Price 100@0.55 Rs.
Premium .Paid=2.75*2000=5500.00 Rs.
Premium Received=0.55*2000= 1100.00 Rs.
Net Premium Paid==5500.00-1100.00=4400.00 Rs.
Maximum Profit==100.00-95.00==5*2000=10000.00-4400.00=5600.00 Rs.
Maximum Loss= 4400.00 Rs.
Break Even Price=97.20

2)Ispat Industries(24) Future-Lot Size 10000 shares.
Buy One Lot January Future @24.00 Rs
Sell One Call Option of January Strike Price 25@0.55 Rs.
Premium Received=0.55*10000= 5500.00 Rs
Maximum Profit=25.00-24.00=1.00*10000=10000.00+5500.00=15500.00 Rs.
Max Loss=Unlimited.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend

BHEL.NS Bearish 2 Falling Rising
ICICIBANK.NS Bearish 2 Falling Falling
INFOSYSTC.NS Bearish 2 Falling Rising
ITC.NS Bearish 1 Falling Rising
MARUTI.NS Bearish 1 Falling Falling
SBIN.NS Bearish 2 Falling Flat!
TATASTEEL.NS Bearish 8 Falling Flat!
TCS.NS Bearish 2 Falling Flat!





Technical indicators of major Stocks
MFI=Money Flow Index
RSI=Relative Strength Index
ADX=Directional Momentum Index
STOCK CLOSE MFI-21 RSI-14 ADX-14
BHEL.NS 2194.85 52.42 36.55 39.41
ICICIBANK.NS 1009.2 40.98 35.77 30.89
INFOSYSTC.NS 3204.3 52.08 40.2 32.38
ITC.NS 170.55 71.26 46.57 20.19
MARUTI.NS 1269.7 31.11 25.43 17
SBIN.NS 2500.8 48.15 33.53 32.32
TATASTEEL.NS 622.45 52.23 38.57 19.01
TCS.NS 1120.15 57.32 48.63 18.16


Trading Idea
1)Wipro(463.10)Buy this stock in decline and trade.
2)Petronet(126.20) Buy this stock in decline and trade



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