corporate earnings may dictate near term trend on the bourses

BSE Sensex (17521.10) and Nifty (5316.95) closed up  0.5%  and  0.7%   respectively  last week.Nifty Future July was quoting at 12.15  points premium.Nifty call option July 5300 was very active.Support for Sensex is at  17390. Resistance for Sensex is at 17690 .Support for Nifty is at 5275 and resistance at 5375.

 ICICI Bank and  SBI added Open Interest in July  series.Huge position was build up at  IFCI  Call Option Strike 42.5.Good build up was also seen at  ICICI Bank July Call Option Strike Price 920.

Strategy  for Futures Option players.                                                                 

1)Chambal Fertilizer(80.80) lot size 4000 shares                                                                                                                                                                                                                         

Buy One Call Option of  July Strike Price 80@2.75  Rs

Sell One Call Option of July Strike Price 85@1.20  Rs.

Premium .Paid=2.75*4000=11000.00 Rs.

Premium Received= 1.20*4000= 4800.00 Rs.

Net Premium Paid=11000.00-4800.00=6200.00  Rs.

Maximum Profit==85-80 =5*4000=20000-6200= 13800.00 Rs.-

 Maximum Loss=  6200.00 Rs.

Break Even Price= 81.55

2)IOC(270.60)   Future-Lot Size 1000 shares.

Buy One Lot July   Future  @270.60 Rs

Sell One Call Option of  July Strike Price 280@ Rs.2.70

Premium Received=2.7*1000= 2700.00 Rs

Maximum Profit=280-270.60 == 9.4*1000=9400.00 + 2700.00=12100.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

1)IFCI(41.25) Buy this stock in decline and trade                                                                                                                                                                                                                                .

2)ICICI BANK(935.10) Buy this stock in decline and trade

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Narendra Nainani

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