Bullet Advisory Indian Stocks Weekly Pre Inauguration Obama Rally Terminates
BSE Sensex(8674.35) and Nifty(2678.55) closed 7.0% and 9.9% down respectively last week. Inflation was at 5.60 v/s 5.24 last week.Crude oil was at 42$.Educom saw panic selling on the false rumors of accounting scam during the week.Vodafone was asked by Supreme Court to approach I.T. Department for juridiction.Deutsche Bank sold 3.38 million shares of Satyam while L & T acquired 8% stake.SEBI petition to question Ramalinga Raju of Satyam was dismissed by the court.FIIs have turned net sellers after the shock of Satyam scam.Support for Sensex is at 8200 and for Nifty 2530.Resistance for Sensex is at 9100 and Nifty is at 2800. Nifty put-call ratio was 0.81.Nifty 2700 call option added open interest.Satyam and DLF added open interest. SAIL and ICICI Bank shaded open interest. Huge position was build up at Reliance Industries January put option strike price 1140 and NTPC January call option strike price 180.
Tactics for Future Option players.
1)Satyam Computers(38.85) Lot Size-600 Shares
Buy one call option of February strike price 35@6.85 Rs.
Sell one call option of February strike price 40@4.30 Rs.
Premium .Paid=6.85*600=4110.00 Rs.
Premium Received=4.30*600=2580.00 Rs.
Net Premium Paid=4110.00-2580.00=1530.00 Rs.
Maximum Profit=40-35=5*600=3000.00-1530.00=1470.00 Rs.
Maximum Loss=1530.00 Rs.
Break-even=37.55 Rs.
2)Reliance Industries(1160) February future-Lot Size 75 shares.
Buy one lot February future @1160.00
Sell one call option of Februay strike price 1260@40.00 Rs.
Premium Received=40*75=3000.00 Rs.
Max Profit==1260-1160=100*75=7500.00+3000=10500.00 Rs.
Max loss=Unlimited.
Trading Idea
1)TataTea(622.10)Buy this stock in decline and trade.
2)Titan(919.40)Buy this stock in decline and trade.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
ICICIBANK.NSBearish12FallingRising
INFOSYSTC.NSBearish5RisingFalling
ITC.NS Neutral 2FallingRising
MARUTI.NS Bearish5FallingRising
SATYAMCOM.NSBulllish6RisingFalling
SBIN.NS Bearish6FallingRising
TATASTEEL.NSBearish4FallingRising
TCS.NS Bearish7RisingRising
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.NS363.85 45.86 38.2218.36
INFOSYSTC.NS1204.65 64.34 49.7319
ITC.NS 170.4 50.2248.9410.86
MARUTI.NS 515.266.9240.3920.9
SATYAMCOM.NS38.8548.8630.4155.06
SBIN.NS 1041.539.7332.0426.65
TATASTEEL.NS166.340.4833.5719.58
TCS.NS 486.1542.1443.8811.3
Website
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