Bullet Advisory Indian Stocks Weekly Markets to remain stock specific following Q3 results
BSE Sensex(9323.59) and Nifty(2828.45) closed 0.9% and 1.6% down respectively last week. Inflation was at 5.24 v/s 5.91 last week.Crude oil was at 36$.Wipro lost ground on the reports of blacklisted by world bank for applying in new tenders till 2011.Infosys and Sasken were down on the news of Nortel filing the bankruptcy under chapter 11. Unitech saw the set back as Fitch downgraded its rating on doubts of repayment capabilities.KPMG and Deloitte were given assignment of restating the accounts of Satyam by newly appointed board.Lazard and Swiss Finance Co. offloaded the shares of Satyam at market price in huge quantity.Support for Sensex is at 9040 and for Nifty 2730.Resistance for Sensex is at 9690 and Nifty is at 2960. Nifty put-call ratio was 0.93.Nifty 2600 put option added open interest.Satyam and ICICI Bank added open interest. TataSteel and Infosys shaded open interest. Huge position was build up at RPL January call option strike price 80 and Reliance Industries January call option strike price 1200
Tactics for Future Option players.
1)Nagarjuna Fertilizers(16.15) Lot Size-3500 Shares
Buy one call option of January strike price 15@1.75 Rs.
Sell one call option of January strike price 20@0.30 Rs.
Premium .Paid=1.75*3500=6125.00 Rs.
Premium Received=0.30*3500=1050.00 Rs.
Net Premium Paid=6125.00-1050.00=5075.00 Rs.
Maximum Profit=20-15=5*3500=17500-5075=12425.00 Rs.
Maximum Loss=5075.00 Rs.
Break-even=16.45 Rs.
2)IDFC(60) January future-Lot Size 1475 shares.
Buy one lot January future @60.00
Sell one call option of January strike price 60@3.75 Rs.
Premium Received=3.75*1475=5531.25 Rs.
Max Profit==5531.25 Rs.
Max loss=Unlimited.
Trading Idea
1)MatrixLab(74.70)Buy this stock in decline and trade.
2)GSFC(79.85)Buy this stock in decline and trade.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
ICICIBANK.NSBearish 7FallingRising
INFOSYSTC.NSNeutral 1RisingFalling
ITC.NS Bulllish 4RisingRising
MARUTI.NS Neutral 2RisingRising
SATYAMCOM.NSBulllish 1FallingFalling
SBIN.NS Bearish 1FallingRising
TATASTEEL.NSBearish 2RisingRising
TCS.NS Bearish 2RisingRising
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.NS 423.7554.6847.5218.89
INFOSYSTC.NS 1267.476.2158.6517.78
ITC.NS 171.7547.5350.8213.73
MARUTI.NS 589.6576.0561.0917.66
SATYAMCOM.NS 24.532.9623.8751.54
SBIN.NS 1164.1549.8842.2519.32
TATASTEEL.NS 204.0539.9545.5516.93
TCS.NS 50350.648.249.99
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