BSE Sensex (8891.61) and Nifty (2763.65) closed 0.5% and 1.0% up respectively last week. Nifty put call ratio was 1.40. Nifty March 2700 put option added open interest Support for Sensex is at 8670 and for Nifty 2690.Resistance for Sensex is at 9200 and Nifty is at 2860. Inflation was at 3.36 v/S 3.92 last week. Crude oil was at 44$.Reduction in excise duty and service tax by two percentage declared by the Government helped the ailing sentiment and market survived despite the downgrade of Indias outlook by Standard & Poors (S&P). GDP Q3 Nos at 5.3% were much below expectations and for the first time in last 16 quarters has come below 7%.Reliance Industries board will meets on 2nd March 2009 to mull the merger with RPL. Merger ratio within 17 to 24 shares is being speculated by the market participants. ACC and Powergrid added open interest. MRPL and BhushanSteel shaded open interest. Huge position was build up at IFCI March call option strike price 20 and Powergrid March call option strike price 100. Good build up was also seen at Reliance Industries March put option strike price 1260 and ICICI Bank March put option strike price 320.
Tactics for Future Option players.
1)NagarjunaFertilizer(15.40) Lot Size-21000 Shares
Buy one call option of March strike price 15@1.20 Rs.
Sell one call option of March strike price 20@0.15 Rs.
Premium .Paid=1.20*21000=25200.00 Rs.
Premium Received=0.15*21000=3150.00 Rs.
Net Premium Paid=25200-3150=22050.00Rs.
Maximum Profit=20-15=5*21000=105000.00-22050.00=82950.00 Rs.
Maximum Loss=22050.00 Rs.
Break-even=16.05 Rs.
2)TataSteel(171.50) March future-Lot Size 1528 shares.
Buy one lot March future @171.50
Sell one call option of March strike price 190@4.90 Rs.
Premium Received=4.90*1528=7487.20Rs.
Max Profit==190-171.50=18.5*1528=28268.00+7487.20=35755.20 Rs.
Max loss=Unlimited.
Trading Idea
1)HDFC Bank(889.50)Buy this stock in decline and trade.
2)Alok Textiles(16.10)Buy this stock in decline and trade
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
BHEL.NS Bulllish8RisingRising
ICICIBANK.NSNeutral 1FallingRising
INFOSYSTC.NSBulllish3FallingRising
ITC.NS Bearish1RisingRising
MARUTI.NS Bulllish3RisingRising
SBIN.NS Neutral1FallingRising
TATASTEEL.NSBulllish2FallingRising
TCS.NS Bulllish 3FallingRising
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 1403.8553.6252.0812.85
ICICIBANK.NS327.55 27.8933.6823.2
INFOSYSTC.NS1231.2552.0950.120.79
ITC.NS 183.05 59.5857.8318.15
MARUTI.NS 677.3 67.6367.2325.13
SBIN.NS 1025.3 40.8835.2925.88
TATASTEEL.NS172.8 6445.2519.31
TCS.NS 483.1 54.2645.2915.93
Website
narendranainani.blogspot.com.
