Best Technical Analyst India Narendra Nainani BULLET ADVISORY

RBI next monetary policy review on 5 August 2014.

BSE Sensex (25641.56)  and NSE Nifty(7663.90) closed  up  by 2.5% and  2.7% respectively  last week.Nifty Future July was quoting at  5.45 points premium.Nifty  call option July  7700 was very active.Support for Sensex is at  25120 and Nifty at 7495. Resistance for Sensex is at 26230 and Nifty at 7850.

IDFC  and  TATA STEEL  added Open Interest in July  series.Huge position was build up at TATA STEEL July  Call Option Strike Price 580.Good build up was also seen at  TATA GLOBAL July  Call Option Strike Price 170.

Strategy  for Futures Option players.

(1) IDFC (164.20)   Future-Lot Size 2000 shares.

Buy One Lot  JULY  Future  @ 164.20 Rs

Sell One Call Option of  JULY  Strike Price 170@ Rs.3.30

Premium Received=3.30*2000= 6600.00 Rs

Maximum Profit=170– 164.20 = 5.80*2000= 11600.00 + 6600 = 18200.00 Rs.

Max Loss=Unlimited.

(2) HINDALCO (184.60) LOT SIZE 2000 shares

Buy  One Call Option of   JULY Strike Price 185@ 5.75 Rs.

Sell  One Call Option of   JULY Strike Price 190@ 3.75 Rs.

Premium Paid = 5.75*2000= 11500.00 Rs.

Premium Received=3.75*2000= 7500.00 Rs.

Net Premium Paid= 11500-7500=4000.00 Rs.

Maximum Profit = 190-185=5*2000=10000– 4000= 6000.00 Rs.

Maximum Loss= 4000.00 Rs.

Break Even= 187

           

Trading Idea

(1) AXIS BANK(1995.80 ) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) TATA STEEL (563) Buy this stock in decline and trade

By 

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