Budget session of the parliament ends on 10 May 2013

BSE Sensex (19575.64)   and Nifty (5944) closed  up  by 1.5% and  1.2% respectively last week.Nifty Future May was quoting at  7.1  points premium.Nifty call option May  6000 was very active.Support for Sensex is at  19300.Resistance for Sensex is at 19820. Support for Nifty is at 5870 and resistance at 6020.

HDFC,RANBAXY,PNB and NTPC  will announce  results next week.

RCOM and  UNITECH added Open Interest in May series.Huge position was build up at  SBI May  Call Option Strike Price 2300.Good build up was also seen at  INFY  Call May  Option Strike Price 2300.

Strategy  for Futures Option players.                                                                 

(1) LT (1570.40) lot size 250 shares                                                                                                                                                                                                                         

Buy One Call Option of  MAY Strike Price 1560@ Rs58.65

Sell One Call Option of  MAY Strike Price 1580@48.75 Rs.

Premium .Paid= 58.65*250=14662.50 Rs.

Premium Received= 48.75*250=  12187.50 Rs.

Net Premium Paid=14662.50-12187.50= 2475.00 Rs.

Maximum Profit==1580-1560=20*250=5000-2475= 2525.00 Rs.-

 Maximum Loss=  2475.00 Rs.

Break Even = 1569.90

(2) SUN PHARMA (989.20)   Future-Lot Size 250 shares.

Buy One Lot  MAY  Future  @989.20 Rs

Sell One Call Option of  MAY Strike Price 1000@ Rs.24.40

Premium Received=24.40*250= 6100.00 Rs

Maximum Profit=1000-989.20 = 10.80*250= 2700.00 + 6100.00 =8800.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) TATA STEEL (311.20) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) CAIRN  (303.20) Buy this stock in decline and trade

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