Equity portfolio construction and management strategies by BULLET ADVISORY

Market may remain volatile as traders roll over positions in F & O

BSE Sensex (26419.55)  and NSE Nifty(7913.20) closed up  by 1.2% and  1.6% respectively  last week.Nifty Future was quoting at  23.50 points premium.Nifty  call option August  8000 was very active.Support for Sensex is at  26150 and Nifty at 7800. Resistance for Sensex is at 26790 and Nifty at 8025.

NTPC and  AXIS BANK  added Open Interest in August  series.Huge position was build up at AXIS BANK August  Call Option Strike Price 404.Good build up was also seen at   SBI August  Call Option Strike Price 2550.

Strategy  for Futures Option players.

(1)  DR REDDY (2835)   Future-Lot Size 125 shares.

Buy One Lot  AUGUST  Future  @ 2835.00 Rs

Sell One Call Option of  AUGUST  Strike Price 2850@ Rs.20.90

Premium Received=20.90*125= 2612.50 Rs

Maximum Profit=2850– 2835 = 15*125= 1875.00 + 2612.50 = 4487.50 Rs.

Max Loss=Unlimited.

(2) ONGC (427.05) LOT SIZE 1000 shares

Buy  One Call Option of   SEPTEMBER Strike Price 420@ 21.30 Rs.

Sell  One Call Option of   SEPTEMBER Strike Price 440@12.20 Rs.

Premium Paid = 21.30*1000= 21300 Rs.

Premium Received=12.20*1000= 12200.00 Rs.

Net Premium Paid= 21300.00-12200.00= 9100.00 Rs.

Maximum Profit =440-420=20*1000=20000– 9100.00= 10900.00 Rs.

Maximum Loss= 9100.00 Rs.

Break Even= 429.10

           

Trading Idea

 (1) BANK INDIA (292.05) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) MARUTI (2754.85) Buy this stock in decline and trade

By 

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