rupee hit near one-year low below 57 a dollar

BSE Sensex (19429.23)   and Nifty (5881) closed  down  by  1.7% and  1.8% respectively last week.Nifty Future June was quoting at  17.85  points premium.Nifty call option June  6000 was very active.Support for Sensex is at  19100.Resistance for Sensex is at 19720. Support for Nifty is at 5780 and resistance at 5970.

REC LTD and  TCS added Open Interest in June series.Huge position was build up at  SBI  June Call Option Strike Price 2100.Good build up was also seen at  INFY  Call June  Option Strike Price 2500.

Strategy  for Futures Option players.                                                                 

(1) LUPIN (762) lot size 500 shares                                                                                                                                                                                                                         

Buy One Call Option of  JUNE Strike Price 760@ 24.00 Rs

Sell One Call Option of  JUNE Strike Price 770@ 19.95 Rs.

Premium .Paid= 24*500= 12000.00 Rs.

Premium Received= 19.95*500 =  9975.00 Rs.

Net Premium Paid= 12000 - 9975= 2025.00 Rs.

Maximum Profit= 770-760= 10*500 = 5000.00- 2025.00= 2975.00 Rs.

 Maximum Loss=  2025.00 Rs.

Break Even = 764.05

(2) DR REDDY (2197.05)   Future-Lot Size 125 shares.

Buy One Lot  JUNE  Future  @ 2197.05 Rs

Sell One Call Option of  JUNE Strike Price 2300@ 16.90 Rs.

Premium Received= 16.90*125 = 2112.50 Rs

Maximum Profit= 2300-2197.05 = 102.95*125= 12868.75 + 2112.50 = 14981.25 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) TCS (1518.95) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) CESC (349.70) Buy this stock in decline and trade

Website www.subscriptionnarendranainani.blogspot.com