derivative contracts expire on 31st May 2012

 

BSE Sensex (16217.82) and Nifty (4920.40) closed  up  0.4%  and  0.3%   respectively  last week.Nifty Future May was quoting at 7.50  points premium.Nifty call option May  4900 was very active.Support for Sensex is at  15900. Resistance for Sensex is at 16650 .Support for Nifty is at 4830 and resistance at 5050.

Coal India,IOC,Bombay Dyeing,Oil India,NMDC,Neyveli Lignite,Balrampur Chini,HPCL,ONGC,SAIL,Tata Motors,ABG Shipyard,Sun Pharma,Power Grid,DLF,GAIL  and HDIL will declare Q4 results next week.

 Tata Steel and  SBI added Open Interest in May  series.Huge position was build up at  SBI  Call Option Strike 2000.Good build up was also seen at  Tata Steel  May Call Option Strike Price 400.

Strategy  for Futures Option players.                                                                 

1)JSW STEEL(607.35) lot size 500 shares                                                                                                                                                                                                                         

Buy One Call Option of  May Strike Price 600@18.35  Rs

Sell One Call Option of  May Strike Price 620@8.30  Rs.

Premium .Paid= 18.35*500=9175.00 Rs.

Premium Received= 8.30*500=  4150.00 Rs.

Net Premium Paid=9175--4150=5025.00 Rs.

Maximum Profit==620-600 =20*500=10000-5025= 4975.00 Rs.-

 Maximum Loss=  5025.00 Rs.

Break Even Price= 610.05

2)Tata Steel(408)   Future-Lot Size 500 shares.

Buy One Lot May   Future  @408 Rs

Sell One Call Option of  May Strike Price 420@ Rs.2.80

Premium Received=2.80*500= 1400.00 Rs

Maximum Profit=420-408 == 12*500=6000.00 + 1400.00=7400.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

1)CANBANK(396.85) Buy this stock in decline and trade                                                                                                                                                                                                                                .

2)SBI(2006.90) Buy this stock in decline and trade

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Narendra Nainani

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Bullet Advisory Indian Stocks-India's Top Most Stock Investment Advice Blog,Hot Stock Tips by Expert Technical Analyst Narendra Nainani of India.Most Preferred Paid Subscription Stock Investment and Portfolio Advice Website India.Most Successful Stock Future Calls Provider Service Indian Share Market.

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