BSE Sensex (20082.62) and Nifty (6094.75) closed up by 2.6% and 2.5% respectively last week.Nifty Future May was quoting at 12.30 points premium.Nifty call option May 6100 was very active.Support for Sensex is at 19700.Resistance for Sensex is at 20500. Support for Nifty is at 5980 and resistance at 6220.
BOB,DR REDDY,BAJAJ AUTO and ITC will announce results next week.
ITC and TATA MOTORS added Open Interest in May series.Huge position was build up at SBI May Call Option Strike Price 2400.Good build up was also seen at INFY Call May Option Strike Price 2400.
Strategy for Futures Option players.
(1) ITC (353.15) lot size 1000 shares
Buy One Call Option of MAY Strike Price 350@ 11.00 Rs
Sell One Call Option of MAY Strike Price firstname.lastname@example.org Rs.
Premium .Paid= 11*1000=11000.00 Rs.
Premium Received= 5.60*1000= 5600.00 Rs.
Net Premium Paid=11000-5600= 5400.00 Rs.
Maximum Profit==360-350=10*1000=10000-5400= 4600.00 Rs.-
Maximum Loss= 5400.00 Rs.
Break Even = 355.40
(2) MARUTI (1738.40) Future-Lot Size 250 shares.
Buy One Lot MAY Future @1738.40 Rs
Sell One Call Option of MAY Strike Price 1800@ 21.40 Rs.
Premium Received=21.40*250= 5350.00 Rs
Maximum Profit=1800-1738.40 = 61.60*250= 15400.00 + 5350.00 = 20750.00 Rs.
(1) LUPIN (742.40) Buy this stock in decline and trade .
(2) TITAN (287.40) Buy this stock in decline and trade