BSE Sensex (18242.56) and Nifty (5528.55) closed down by 1.1% and 0.4% respectively last week.Nifty Future April was quoting at 4.45 points premium.Nifty call option April 5500 was very active.Support for Sensex is at 18050. Resistance for Sensex is at 18500. Support for Nifty is at 5480 and resistance at 5580.
RIL,TCS and WIPRO will announce Q4 results next week.
SBI and DLF added Open Interest in April series.Huge position was build up at INFY April Call Option Strike Price 2500.Good build up was also seen at INFY Put April Option Strike Price 2400.
Strategy for Futures Option players.
(1) RPOWER (66.70) lot size 4000 shares
Buy One Call Option of APRIL Strike Price firstname.lastname@example.org Rs
Sell One Call Option of APRIL Strike Price email@example.com Rs.
Premium .Paid= 3.4*4000=13600.00 Rs.
Premium Received= 1.30*4000= 5200.00 Rs.
Net Premium Paid=13600-5200= 8400.00 Rs.
Maximum Profit==70-65 =5*4000=20000-8400= 11600.00 Rs.-
Maximum Loss= 8400.00 Rs.
Break Even = 67.10
(2) TATA MOTORS (276.25) Future-Lot Size 1000 shares.
Buy One Lot APRIL Future @276.25 Rs
Sell One Call Option of APRIL Strike Price 280@ Rs.6.10
Premium Received=6.10*1000= 6100.00 Rs
Maximum Profit=280-276.25 = 3.75*1000= 3750 + 6100=9850.00 Rs.
(1) HDFC (764.80) Buy this stock in decline and trade .
(2) REC LTD (218.20) Buy this stock in decline and trade