final phase of Lok Sabha elections concludes on Monday, 12 May 2014
BSE Sensex (22994.23) and NSE Nifty(6858.80) closed up by 2.6% and 2.4% respectively last week.Nifty Future May was quoting at 35.90 points premium.Nifty call option May 7500 was very active.Support for Sensex is at 22500 and Nifty at 6700. Resistance for Sensex is at 23530 and Nifty at 7020.
UNITECH and IBREALEST added Open Interest in May series.Huge position was build up at ONGC April Call Option Strike Price 340.Good build up was also seen at IDFC May Call Option Strike Price 120.
Strategy for Futures Option players.
(1)AXIS BANK(1657.60) Future-Lot Size 250 shares.
Buy One Lot MAY Future @1657.60 Rs
Sell One Call Option of MAY Strike Price 1700@ Rs.82.50
Premium Received=82.50*250= 20625.00 Rs
Maximum Profit=1700– 1657.60 = 42.40*250= 10600 + 20625 = 31225.00 Rs.
(2) BHEL(194.05) LOT SIZE 2000 shares
Buy One Call Option of MAY Strike Price 190@ 15.25 Rs.
Sell One Call Option of MAY Strike Price 200@ 10.45 Rs.
Premium Paid = 15.25*2000= 30500.00 Rs.
Premium Received=10.45*2000= 20900.00 Rs.
Net Premium Paid= 30500-20900=9600.00 Rs.
Maximum Profit = 200-190=10*2000=20000.00 – 9600.00= 10400.00 Rs.
Maximum Loss= 9600.00 Rs.
Break Even= 194.80
(1) RELIANCE INDUSTRIES (997.60) Buy this stock in decline and trade .
(2) ICICI BANK (1378.60) Buy this stock in decline and trade
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