Raghuram Rajan has been appointed as Officer on Special Duty in the Reserve Bank of India for a period of three weeks before his taking over as Governor, RBI on September 5, 2013.Tasks for him will be to rein in India’s double-digit inflation without excessively crimping growth and in process stabilize rupee.
BSE Sensex (18789.34) and Nifty (5565.65) closed down by 2.01 % and 2 % respectively last week.Nifty Future August was quoting at 24.05 points premium.Nifty Call option August 5700 was very active.Support for Sensex is at 18450.Resistance for Sensex is at 19200. Support for Nifty is at 5460 and resistance at 5690.
CIPLA and BIOCON added Open Interest in AUGUST series.Huge position was build up at RANBAXY AUGUST Call Option Strike Price 340.Good build up was also seen at CIPLA Call August Option Strike Price 430.
DLF,SBI,ONGC,M&M,TATA STEEL,HINDALCO,SUNPHARMA,CIPLA and BPCL will declare Q1 result next week. Share Market remains closed on 15 August 2013 because of Independence Day.
Strategy for Futures Option players.
(1) BIOCON (336.70) lot size 1000 shares
Buy One Call Option of AUGUST Strike Price 340@ 10.80 Rs
Sell One Call Option of AUGUST Strike Price 350@ 8.65 Rs.
Premium .Paid= 10.80*1000 = 10800.00 Rs.
Premium Received= 8.65*1000 = 8650.00 Rs.
Net Premium Paid= 10800 – 8650 = 2150.00 Rs.
Maximum Profit= 350-340= 10*1000 = 10000 – 2150= 7850.00 Rs.
Maximum Loss= 2150.00 Rs.
Break Even = 342.15
(2) CIPLA (416.45) Future-Lot Size 1000 shares.
Buy One Lot AUGUST Future @ 416.45 Rs
Sell One Call Option of AUGUST Strike Price 440@ 5.50 Rs.
Premium Received= 5.50*1000 = 5500.00 Rs
Maximum Profit= 440-416.45 = 23.55*1000 = 23550.00 + 5500.00 = 29050.00 Rs.
(1) RANBAXY (359.20) Buy this stock in decline and trade .
(2) WIPRO (447.15) Buy this stock in decline and trade
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