BSE Sensex (20286.12) and Nifty (6187.30) closed up by 1% and 1.5% respectively last week.Nifty Future May was quoting at 6.70 points premium.Nifty call option May 6200 was very active.Support for Sensex is at 20100.Resistance for Sensex is at 20500. Support for Nifty is at 6120 and resistance at 6270.
COAL INDIA,TATA STEEL,SBI,BHEL and LT will announce results next week.
IPO of Just Dial opens for bidding on 20 May 2013 with the price band of Rs. 470 to Rs. 593.Retail individual investor will be offered discount of Rs. 47.
BHEL and DLF added Open Interest in May series.Huge position was build up at ITC May Call Option Strike Price 340.Good build up was also seen at DLF Call May Option Strike Price 250.
Strategy for Futures Option players.
(1) DLF (249.65) lot size 1000 shares
Buy One Call Option of MAY Strike Price 250@ 7.20 Rs
Sell One Call Option of MAY Strike Price 260@ 3.50 Rs.
Premium .Paid= 7.20*1000=7200.00 Rs.
Premium Received= 3.50*1000= 3500.00 Rs.
Net Premium Paid= 7200-3500= 3700.00 Rs.
Maximum Profit= 260-250=10*1000=10000-3700= 6300.00 Rs.-
Maximum Loss= 3700.00 Rs.
Break Even = 253.70
(2) ACC (1274) Future-Lot Size 250 shares.
Buy One Lot MAY Future @1274.00 Rs
Sell One Call Option of MAY Strike Price 1300@ 15.30 Rs.
Premium Received= 15.30*250= 3825.00 Rs
Maximum Profit=1300-1274 = 26*250= 6500.00 + 3825.00 = 10325.00 Rs.
(1) ICICI BANK (1230.45) Buy this stock in decline and trade .
(2) HDIL (60.30) Buy this stock in decline and trade