Q4 results to dictate the trend

BSE Sensex (20286.12)   and Nifty (6187.30) closed  up  by 1% and  1.5% respectively last week.Nifty Future May was quoting at  6.70  points premium.Nifty call option May  6200 was very active.Support for Sensex is at  20100.Resistance for Sensex is at 20500. Support for Nifty is at 6120 and resistance at 6270.

COAL INDIA,TATA STEEL,SBI,BHEL and LT  will announce  results next week.

IPO of Just Dial opens for bidding on 20 May 2013 with the price band of Rs. 470 to Rs. 593.Retail individual investor will be offered discount of Rs. 47.

BHEL and  DLF added Open Interest in May series.Huge position was build up at  ITC May  Call Option Strike Price 340.Good build up was also seen at  DLF  Call May  Option Strike Price 250.

Strategy  for Futures Option players.                                                                 

(1) DLF (249.65) lot size 1000 shares                                                                                                                                                                                                                         

Buy One Call Option of  MAY Strike Price 250@ 7.20 Rs

Sell One Call Option of  MAY Strike Price 260@ 3.50 Rs.

Premium .Paid= 7.20*1000=7200.00 Rs.

Premium Received= 3.50*1000=  3500.00 Rs.

Net Premium Paid= 7200-3500= 3700.00 Rs.

Maximum Profit= 260-250=10*1000=10000-3700= 6300.00 Rs.-

 Maximum Loss=  3700.00 Rs.

Break Even = 253.70

(2) ACC (1274)   Future-Lot Size 250 shares.

Buy One Lot  MAY  Future  @1274.00 Rs

Sell One Call Option of  MAY Strike Price 1300@ 15.30 Rs.

Premium Received= 15.30*250= 3825.00 Rs

Maximum Profit=1300-1274 = 26*250= 6500.00 + 3825.00 = 10325.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) ICICI BANK (1230.45) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) HDIL  (60.30) Buy this stock in decline and trade

Website www.subscriptionnarendranainani.blogspot.com

best way to handle our calls - Narendra Nainani

how to trade on our call - Narendra Nainani

invest 10% of your investable capital in one call. buy the stock at the ruling price and declines and wait for the profit to realize if necessary. validity of the call is from one to 30 days. you are free to book profits at any price you wish. if you think that the stock you bought is not moving or slightly going down you can sell the "in the money call option" of the same stock same quantity as stock purchased. format of our call will be like "Buy TCS". no price or stop loss or targets will be given. it means that we are bullish on the stock and can be purchased at current price and at declines and you are free to sell at any price when you realize the profit. mode of sending the call will be by SMS,EMAIL,YAHOO MESSENGER or any other mode suitable to client

Website   http://www.nainaninarendra.blogspot.com

Website   http://www.subscriptionnarendranainani.blogspot.com 

Mobile No. +919898162770

Strong buying by foreign funds continues

BSE Sensex (20082.62)   and Nifty (6094.75) closed  up  by 2.6% and  2.5% respectively last week.Nifty Future May was quoting at  12.30  points premium.Nifty call option May  6100 was very active.Support for Sensex is at  19700.Resistance for Sensex is at 20500. Support for Nifty is at 5980 and resistance at 6220.

BOB,DR REDDY,BAJAJ AUTO and ITC  will announce  results next week.

ITC and  TATA MOTORS added Open Interest in May series.Huge position was build up at  SBI May  Call Option Strike Price 2400.Good build up was also seen at  INFY  Call May  Option Strike Price 2400.

Strategy  for Futures Option players.                                                                 

(1) ITC (353.15) lot size 1000 shares                                                                                                                                                                                                                         

Buy One Call Option of  MAY Strike Price 350@ 11.00 Rs

Sell One Call Option of  MAY Strike Price 360@5.60 Rs.

Premium .Paid= 11*1000=11000.00 Rs.

Premium Received= 5.60*1000=  5600.00 Rs.

Net Premium Paid=11000-5600= 5400.00 Rs.

Maximum Profit==360-350=10*1000=10000-5400= 4600.00 Rs.-

 Maximum Loss=  5400.00 Rs.

Break Even = 355.40

(2) MARUTI (1738.40)   Future-Lot Size 250 shares.

Buy One Lot  MAY  Future  @1738.40 Rs

Sell One Call Option of  MAY Strike Price 1800@ 21.40 Rs.

Premium Received=21.40*250= 5350.00 Rs

Maximum Profit=1800-1738.40 = 61.60*250= 15400.00 + 5350.00 = 20750.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) LUPIN (742.40) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) TITAN  (287.40) Buy this stock in decline and trade

Website www.subscriptionnarendranainani.blogspot.com