Increase in crude oil prices raised concerns of increase in India's current account deficit and fiscal deficit which in turn invited profit booking in the stock market
BSE Sensex (25228.17) and NSE Nifty(7542.10) closed down by 0.7% and 0.5% respectively last week.Nifty Future June was quoting at 18.40 points premium.Nifty call option June 7700 was very active.Support for Sensex is at 24850 and Nifty at 7430. Resistance for Sensex is at 25550 and Nifty at 7630.
India Cement and Petronet added Open Interest in June series.Huge position was build up at UNITECH June Put Option Strike Price 32.50.Good build up was also seen at JPASSOCIAT June Put Option Strike Price 75.
Strategy for Futures Option players.
(1)RANBAXY (466.20) Future-Lot Size1000 shares.
Buy One Lot JUNE Future @446.20 Rs
Sell One Call Option of JUNE Strike Price 480@ Rs.5.60
Premium Received=5.60*1000= 5600.00 Rs
Maximum Profit=480– 466.20 = 13.80*1000= 13800 + 56000 = 19400.00 Rs.
(2) HDFC BANK (835.40) LOT SIZE 500 shares
Buy One Call Option of JUNE Strike Price 830@ 25.05 Rs.
Sell One Call Option of JUNE Strike Price 850@ 14.30 Rs.
Premium Paid = 25.05*500= 12525.00 Rs.
Premium Received=14.30*500= 7150.00 Rs.
Net Premium Paid= 12525-7150=5375.00 Rs.
Maximum Profit = 850-830=20*500=10000– 5375= 4625.00 Rs.
Maximum Loss= 5375.00 Rs.
Break Even= 840.75
(1) TCS (2213.55) Buy this stock in decline and trade .
(2) SUN PHARMA (629.70) Buy this stock in decline and trade
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