BSE Sensex (9300.86) and Nifty (2843.10) closed 1.3% and 1.1% down respectively last week. Nifty put call ratio was 1.00..Sensex support is at 9100. Sensex resistance is at 9570. Nifty support is at 2770. Nifty resistance is at 2940.Inflation was at 5.07v/s 5.64 last week. Crude oil was at 40$.. Former Global Business Head of Satyam Mr. A.S.Murty was appointed as new CEO of the company. Mr. Kiran Karnik was appointed as chairperson of Satyam by the Government. It is feared that Ramalingaya Rajus family may loose the control of Maytas as IL&FS has requested the Government to appoint their nominees on the board. Interim union budget will be presented by the Government on 16th February 2009.Announcement of some tax relief is expected. Third stimulus package is to be declared before the month end which may contain some soaps for infrastructure and export related sectors. Markets are also keenly waiting for the major stimulus package to be declared by U.S. Government for reviving the banking sector. Nifty February 2700 put option added open interest Reliance Industries and TCS added open interest. SBI and Infosys shaded open interest. Huge position was build up at TTML February call option strike price 25 and ICICI Bank February call option strike price 400.Surprisingly Nifty March 2200 put option is adding continuous open interest.
Tactics for Future Option players.
1)Chambal Fertilizers(39.80) Lot Size-3450 Shares
Buy one call option of February strike price 40@2.80 Rs.
Sell one call option of February strike price 45@1.35 Rs.
Premium .Paid=2.80*3450=9660.00 Rs.
Premium Received=1.35*3450=4657.50 Rs.
Net Premium Paid=9660.00-4657.50=5002.50 Rs.
Maximum Profit=45-40=5*3450=17250.00-5002.50=12247.50 Rs.
Maximum Loss=5002.50 Rs.
Break-even=41.45 Rs.
2)AshokLeyland(15) February future-Lot Size 4775 shares.
Buy one lot February future @15.00
Sell one call option of Februay strike price 15@0.85 Rs.
Premium Received=0.85*4775=4058.75 Rs.
Max Profit==4058.75 Rs.
Max loss=Unlimited.
Trading Idea
1)Century Textiles(164.95)Buy this stock in decline and trade.
2)DR.Reddy(458.90)Buy this stock in decline and trade.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
BHEL.NS Bulllish4RisingRising
ICICIBANK.NS Bulllish1FallingRising
INFOSYSTC.NS Neutral2RisingRising
ITC.NS Neutral1RisingRising
MARUTI.NS Bearish1RisingRising
SBIN.NS Bulllish1FallingRising
TATASTEEL.NS Bulllish3RisingRising
TCS.NS Bulllish1RisingRising
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
BHEL.NS 1365.55 35.5450.2614.07
ICICIBANK.NS407.1 36.9849.7315.52
INFOSYSTC.NS 1288.9 61.558.3921.95
ITC.NS 182.5561.9261.8619.41
MARUTI.NS 577.771.6454.6515.74
SBIN.NS 1118.641.7546.427.45
TATASTEEL.NS 186.546.6746.6121.64
TCS.NS 502.849.7350.1110.33
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