Saturday, August 28, 2010

Bullet Advice For Indian Stocks Weekly – profit taking may continue fear of redemption pressure by investors

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BSE Sensex (17998.41) and Nifty (5408.7) closed down 2.2% and 2.21% respectively last week.Nifty Future August was quoting at 3.80 points discount..Nifty Call Option September 5500 was very active.Support for Sensex is at 17620. Resistance for Sensex is at 18320 .Support for Nifty is at 5290 and resistance at 5510.
Indian rupee may depreciate on the account of capital outflow if it happens as expected.Out performance of Indian market will be under test in the coming days.

RIL and Tata Steel added Open Interest in September series.Huge position was build up at Tata Steel September Call Option Strike Price 520.Good build up was also seen at Ispat Industries September Call Option Strike Price 20.
Strategy for Futures Option players.

1)Ispat Industries(18.70) Lot Size-11000 Shares
Buy One Call Option of September Strike Price 17.50@1.75 Rs
Sell One Call Option of September Strike Price 20@0.60 Rs.
Premium .Paid=1.75*11000= 19250.00.00 Rs.
Premium Received=0.60*11000= 6600.00 Rs.
Net Premium Paid==19250.00-6600.00=12650.00 Rs.
Maximum Profit==20.00-17.50==2.50*11000=27500.00-12650.00=14850.00 Rs.
Maximum Loss= 12650.00 Rs.
Break Even Price=18.65
2)IOC(399.60) August Future-Lot Size 1000 shares.
Buy One Lot September Future @399.60 Rs

Sell One Call Option of September Strike Price 420@8.55 Rs.
Premium Received=8.55*1000= 8550.00 Rs
Maximum Profit=420.00-399.60=20.40*1000=20400.00+ 8550.00=28950.00 Rs.
Max Loss=Unlimited.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
BHEL.NS Bearish 1 Falling Rising
ICICIBANK.NS Bearish 3 Falling Rising
INFOSYSTC.NS Bearish 3 Falling Falling
ITC.NS Neutral 1 Falling Falling
MARUTI.NS Bearish 5 Falling Falling
SBIN.NS Bearish 1 Falling Rising
TATASTEEL.NS Bulllish 1 Falling Rising
TCS.NS Bearish 1 Falling Rising

Technical indicators of major Stocks
MFI=Money Flow Index
RSI=Relative Strength Index
ADX=Directional Momentum Index
BHEL.NS 2475 63.3 50.83 12.24
ICICIBANK.NS 955.1 58.16 49.79 30.88
INFOSYSTC.NS 2702.3 39.05 39.54 14.24
ITC.NS 161.1 64.23 25.7 56.04
MARUTI.NS 1215 46.26 37.9 31.6
SBIN.NS 2787.05 67.98 62.39 47.11
TATASTEEL.NS 509 50.32 45.13 33.93
TCS.NS 853 45.05 51.31 15.4

Trading Idea
1)ONGC(1318.20)Buy this stock in decline and trade.
2)Gail(460.15) Buy this stock in decline and trade

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