RBI next monetary policy review on 5 August 2014.
BSE Sensex (25641.56) and NSE Nifty(7663.90) closed up by 2.5% and 2.7% respectively last week.Nifty Future July was quoting at 5.45 points premium.Nifty call option July 7700 was very active.Support for Sensex is at 25120 and Nifty at 7495. Resistance for Sensex is at 26230 and Nifty at 7850.
IDFC and TATA STEEL added Open Interest in July series.Huge position was build up at TATA STEEL July Call Option Strike Price 580.Good build up was also seen at TATA GLOBAL July Call Option Strike Price 170.
Strategy for Futures Option players.
(1) IDFC (164.20) Future-Lot Size 2000 shares.
Buy One Lot JULY Future @ 164.20 Rs
Sell One Call Option of JULY Strike Price 170@ Rs.3.30
Premium Received=3.30*2000= 6600.00 Rs
Maximum Profit=170– 164.20 = 5.80*2000= 11600.00 + 6600 = 18200.00 Rs.
(2) HINDALCO (184.60) LOT SIZE 2000 shares
Buy One Call Option of JULY Strike Price 185@ 5.75 Rs.
Sell One Call Option of JULY Strike Price 190@ 3.75 Rs.
Premium Paid = 5.75*2000= 11500.00 Rs.
Premium Received=3.75*2000= 7500.00 Rs.
Net Premium Paid= 11500-7500=4000.00 Rs.
Maximum Profit = 190-185=5*2000=10000– 4000= 6000.00 Rs.
Maximum Loss= 4000.00 Rs.
Break Even= 187
(1) AXIS BANK(1995.80 ) Buy this stock in decline and trade .
(2) TATA STEEL (563) Buy this stock in decline and trade
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