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 email@example.com 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.
(1) TATA STEEL (311.20) Buy this stock in decline and trade .
(2) CAIRN (303.20) Buy this stock in decline and trade