BSE Sensex (9634.74) and Nifty (2948.35) closed 3.6% and 3.7% up respectively last week. Nifty put call ratio was 1.33. Support for Sensex is at 9400 and for Nifty 2870.Resistance for Sensex is at 9958 and Nifty is at 3050. Inflation was at 4.39 v/S 5.07 last week. Crude oil was at 35$.Markets recovered from low levels on the expectation of some tax relief in the Interim union budget which is to be presented on 16th February,2009. Rumors of cut in Securities Transaction Tax being considered by the Government also helped the market to remain strong. Disappointment if any in the Interim budget can change the mood of market players and market can change the direction suddenly for the worse. Nifty February 3100 call option added open interest. DLF and TATASTEEL added open interest. Reliance Industries and Reliance Communications shaded open interest. Huge position was build up at TTML February call option strike price 25 and TataSteel February put option strike price 185
Tactics for Future Option players.
1)TataSteel(194.15) Lot Size-382 Shares
Buy one call option of February strike price 195@8.00 Rs.
Sell one call option of February strike price 200@6.45 Rs.
Premium .Paid=8.00*382=3056.00 Rs.
Premium Received=6.45*382=2463.90 Rs.
Net Premium Paid=3056.00-2463.90=592.10 Rs.
Maximum Profit=200-195=5*382=1910-592.10=1317.9 Rs.
Maximum Loss=592.10 Rs.
Break-even=196.55 Rs.
2)TTML(23.30) February future-Lot Size 5225 shares.
Buy one lot February future @23.30
Sell one call option of February strike price 25@0.15 Rs.
Premium Received=0.15*5225=783.75 Rs.
Max Profit==25-23.30=1.70*5225=8882.50+783.75=9666.25 Rs.
Max loss=Unlimited.
Trading Idea
1)GSPL(33.30)Buy this stock in decline and trade.
2)AndhraBank(55.70)Buy this stock in decline and trade.
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
BHEL.NS Bulllish1RisingRising
ICICIBANK.NS Bulllish1RisingRising
INFOSYSTC.NS Bearish3RisingRising
ITC.NS Bearish4RisingRising
MARUTI.NS Bulllish1RisingRising
SBIN.NS Bulllish6RisingRising
TATASTEEL.NS Bulllish1RisingRising
TCS.NS Bearish3RisingRising
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 1467.449.7759.914.53
ICICIBANK.NS 434.451.3255.1312.33
INFOSYSTC.NS 1251.6545.649.317.25
ITC.NS 179.360.1955.1921.69
MARUTI.NS 628.859.4362.5317.72
SBIN.NS 1193.850.7956.4720.69
TATASTEEL.NS 194.1562.6450.7616.12
TCS.NS 511.243.1951.748.47
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