Equity Trading & Equity Portfolio Advisory India Bullet

Geo-political concerns in the Middle East hit global equity markets

BSE Sensex (18619.72)   and Nifty (5471.80) closed  up  by  0.5 % and  0.01 % respectively last week.Nifty Future September was quoting at  9.80  points discount.Nifty Call option September  5500 was very active.Support for Sensex is at  18270.Resistance for Sensex is at 19050. Support for Nifty is at 5370 and resistance at 5600.

HIND ZINC  and  SUN PHARMA added Open Interest in SEPTEMBER series.Huge position was build up at  CIPLA  CALL Option Strike Price 440.Good build up was also seen at  TCS  September CALL Option Strike Price 2080.

Strategy  for Futures Option players.                                                               

(1)TCS (2033.20) lot size 250 shares                                                                                                                                                                                                                         

Buy One Call Option of SEPTEMBER Strike Price 2000@ 83.50 Rs

Sell One Call Option of  SEPTEMBER Strike Price 2040@ 73.00 Rs.

Premium .Paid= 83.50*250 = 20875.00 Rs.

Premium Received= 73.00*250 =  18250.00 Rs.

Net Premium Paid= 20875 – 18250 = 2625.00 Rs.

Maximum Profit= 2040-2000= 40*250 = 10000 – 2625= 7375.00 Rs.

 Maximum Loss=  2625.00 Rs.

Break Even = 2010.50

(2) DR REDDY  (2291.55)   Future-Lot Size 125 shares.

Buy One Lot  SEPTEMBER  Future  @ 2291.55 Rs

Sell One Call Option of  SEPTEMBER Strike Price 2300@ 95.00 Rs.

Premium Received= 95*125 = 11875.00 Rs

Maximum Profit= 2300-2291.55 = 8.45*125 = 1056.25 + 11875.00 = 12931.25 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) INFY (3105.85) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) WIPRO (483.60) Buy this stock in decline and trade

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Derivative Strategies Advisory India Bullet Stock Recommendations and Guidance

Fear of Fed winding down bond buying program sets panic in the market

BSE Sensex (18598.18)   and Nifty (5507.85) closed  down  by  1.01 % and  1 % respectively last week.Nifty Future August was quoting at  0.15  points premium.Nifty Put option August  5500 was very active.Support for Sensex is at  18300.Resistance for Sensex is at 18850. Support for Nifty is at 5420 and resistance at 5585.

HEROMOTORCO  and  ITC  added Open Interest in AUGUST series.Huge position was build up at  ULTRACEMCO AUGUST PUT Option Strike Price 1650.Good build up was also seen at  TITAN  August  PUT Option Strike Price 220.

Strategy  for Futures Option players.                                                               

(1) IDEA (171.85) lot size 2000 shares                                                                                                                                                                                                                         

Buy One Call Option of  AUGUST Strike Price 170@7.00 Rs

Sell One Call Option of  AUGUST Strike Price 180@ 2.50 Rs.

Premium .Paid= 7*2000 = 14000.00 Rs.

Premium Received= 2.5*2000 =  5000.00 Rs.

Net Premium Paid= 14000 – 5000 = 9000.00 Rs.

Maximum Profit= 180-170= 10*2000 = 20000 – 9000= 11000.00 Rs.

 Maximum Loss=  9000.00 Rs.

Break Even = 174.50

(2) TATA MOTORS (314.80)   Future-Lot Size 1000 shares.

Buy One Lot  AUGUST  Future  @ 416.45 Rs

Sell One Call Option of  AUGUST Strike Price 320@ 7.00 Rs.

Premium Received= 7*1000 = 7000.00 Rs

Maximum Profit= 320-314.80 = 5.20*1000 = 5200.00 + 7000.00 = 12200.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) CAIRN (301.30) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) DABUR  (170.10) Buy this stock in decline and trade

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Share Market insight by Stock Portfolio Advisor India Narendra Nainani

Raghuram Rajan has been appointed as Officer on Special Duty in the Reserve Bank of India for a period of three weeks before his taking over as Governor, RBI on September 5, 2013.Tasks for  him will be to rein in India’s double-digit inflation without excessively crimping growth and in process stabilize rupee.

BSE Sensex (18789.34)   and Nifty (5565.65) closed  down  by  2.01 % and  2 % respectively last week.Nifty Future August was quoting at  24.05  points premium.Nifty Call option August  5700 was very active.Support for Sensex is at  18450.Resistance for Sensex is at 19200. Support for Nifty is at 5460 and resistance at 5690.

CIPLA  and  BIOCON  added Open Interest in AUGUST series.Huge position was build up at  RANBAXY AUGUST Call Option Strike Price 340.Good build up was also seen at  CIPLA Call August  Option Strike Price 430.

DLF,SBI,ONGC,M&M,TATA STEEL,HINDALCO,SUNPHARMA,CIPLA and BPCL will declare Q1 result next week. Share Market remains closed on 15 August 2013 because of Independence Day.

Strategy  for Futures Option players.                                                               

(1) BIOCON (336.70) lot size 1000 shares                                                                                                                                                                                                                         

Buy One Call Option of  AUGUST Strike Price 340@ 10.80 Rs

Sell One Call Option of  AUGUST Strike Price 350@ 8.65 Rs.

Premium .Paid= 10.80*1000 = 10800.00 Rs.

Premium Received= 8.65*1000 =  8650.00 Rs.

Net Premium Paid= 10800 – 8650 = 2150.00 Rs.

Maximum Profit= 350-340= 10*1000 = 10000 – 2150= 7850.00 Rs.

 Maximum Loss=  2150.00 Rs.

Break Even = 342.15

(2) CIPLA (416.45)   Future-Lot Size 1000 shares.

Buy One Lot  AUGUST  Future  @ 416.45 Rs

Sell One Call Option of  AUGUST Strike Price 440@ 5.50 Rs.

Premium Received= 5.50*1000 = 5500.00 Rs

Maximum Profit= 440-416.45 = 23.55*1000 = 23550.00 + 5500.00 = 29050.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) RANBAXY (359.20) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) WIPRO  (447.15) Buy this stock in decline and trade

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