Bullet Advisory Indian Stocks Weekly Fiis' In No Mood State After Satyam Saga

Bullet Advisory Indian Stocks Weekly FIIs in no mood state after Satyam saga

BSE Sensex(9406.47) and Nifty(2847) closed 5.5% and 5.7% down respectively last week. Inflation was at 5.91 v/s 6.38 last week.Crude oil was at 42$.Market lost ground after Ramalinga Raju Chairperson of Satyam Computer resigned and confessed the fraud amounting 7000 Cr.FIIs like Morgan Stanley,UBS AG,Fidelity and Aberdeen were disappointed and exited from the counter at market price.SEBI summonsed Mr.Raju in late afternoon for inquiry and he surrendered himself to AP police in the evening.Support for Sensex is at 8500 and for Nifty 2607.Resistance for Sensex is at 10165 and Nifty is at 3075. Nifty put-call ratio was 1.12.Nifty 2900 put option added open interest. Jaiprakash associates and Unitech added open interest. ICICI Bank and Satyam shaded open interest. Huge position was build up at Unitech January call option strike price 40 and RNRL January call option strike price 60.

Tacticsfor Future Option players.

1)UNITECH(36) Lot Size-900 Shares
Buy one call option of January strike price 35@5.15 Rs.
Sell one call option of January strike price 40@4.15 Rs.
Premium .Paid=5.15*900=4635.00 Rs.
Premium Received=4.15*900=3735.00 Rs.
Net Premium Paid=4635.00-3735.00=900.00 Rs.
Maximum Profit=40-35=5*900=4500.00-900.00=3600.00 Rs.
Maximum Loss=900.00 Rs.
Break-even=36 Rs.

2)NTPC(175.50) January future-Lot Size 1625 shares.
Buy one lot January future @175.50
Sell one call option of January strike price 180@5.10 Rs.
Premium Received=5.10*1625=8287.50 Rs.
Max Profit==180.00-175.50=4.50*1625=7312.50+8287.50=15600.00 Rs.
Max loss=Unlimited.


Trading Idea
1)BPCL(380.65)Buy this stock in decline and trade.
2)TCS(536.95)Buy this stock in decline and trade.


Trend of Major Stocks




STOCK TREND Days WeeklyTrend MonthlyTrend

ICICIBANK.NSBearish 2 RisingRising
INFOSYSTC.NSBulllish 4 RisingFalling
ITC.NS Bearish 2 FallingRising
MARUTI.NS Bulllish 8 RisingRising
SATYAMCOM.NSBearish 2 FallingFalling
SBIN.NS Bearish 3 FallingRising
TATASTEEL.NSBearish 2 RisingRising
TCS.NS Bulllish 1 RisingRising


Technical indicators of major Stocks

MFI=Money Flow Index
RSI=Relative Strength Index
ADX=Directional Momentum Index


STOCK CLOSE MFI-21 RSI-14 ADX-14



ICICIBANK.NS456.661.5953.2823.59
INFOSYSTC.NS1203.479.0955.3413.83
ITC.NS 169.6544.8846.411.67
MARUTI.NS 585.8570.6463.6720.76
SATYAMCOM.NS23.7531.3320.4344.36
SBIN.NS 1221.160.5846.315.93
TATASTEEL.NS21549.3648.0619.65
TCS.NS 536.9545.6558.3610.94