BSE Sensex (8325.82) and Nifty (2620.15) closed 6.4% and 5.2% down respectively last week. Nifty Put Call Ratio was 1.28. Nifty March 2500 Put Option added Open Interest .Support for Sensex is at 7660 and Nifty at 2420.Resistance for Sensex is at 8720 and Nifty is at 2740. Inflation was at 3.03 v/S 3.36 last week.Crude oil was at 44$.Market will remain shut on 10th and 11th March 2009 because of Id and Holi festival respectively.Satyam Computers received an approval to sell 51 percent stake from the market regulator.Leading private bank ICICI slashed the home loan rates by 25 to 50 basis points.Tata Steel reported higher sales nos.in February by over 47 percent year on year basis. ICICI Bank and State Bank Of India (SBI) added Open Interest. Reliance Capital and Tata Steel shaded Open Interest. Huge position was build up at Reliance Industries March Call Option Strike Price 1200.Good build up was also seen at ONGC March Put Option Strike Price 660 .
Tactics for Future Option players.
1)HINDALCO(39.45) Lot Size-7036 Shares
Buy One Call Option of March Strike Price 40@1.75 Rs.
Sell One Call Option of March Strike Price 45@0.45 Rs.
Premium .Paid=1.75*7036=12313.00 Rs.
Premium Received=0.45*7036=3166.20 Rs.
Net Premium Paid=12313.00-3166.20=9146.80 Rs.
Maximum Profit=45-40=5*7036=35180-9146.80=26033.20 Rs.
Maximum Loss=9146.80 Rs.
Break-even= 41.30 Rs.
2)SAIL(76.70) March Future-Lot Size 5400 shares.
Buy One Lot March Future @76.70
Sell One Call Option of March Strike Price 80@2.65 Rs.
Premium Received=2.65*5400=14310.00 Rs.
Max Profit==80.00-76.70=3.30*5400=17820.00+14310.00=32130.00 Rs.
Max Loss=Unlimited.
Trading Idea
1)Escorts(33.45)Buy this Stock in decline and trade.
2)Grasim(1401.55)Buy this Stock in decline and trade
Trend of Major Stocks
STOCK TREND Days WeeklyTrend MonthlyTrend
BHEL.NS Bearish5FallingRising
ICICIBANK.NSNeutral 1FallingFalling
INFOSYSTC.NSBulllish1FallingRising
ITC.NS Bearish6FallingRising
MARUTI.NS Bearish2FallingRising
SAIL.NS Bulllish3FallingRising
SBIN.NS Neutral 1FallingFalling
TATASTEEL.NSBulllish1FallingRising
TCS.NS Bulllish3FallingRising
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 1311.15 49.05 48.99 13.22
ICICIBANK.NS 269.15 15.02 25.49 33.23
INFOSYSTC.NS 1219.35 42.38 49.56 21
ITC.NS 164.55 36.53 32.8 20.04
MARUTI.NS 649.65 52.25 56.01 33.17
SAIL.NS 76.75 48.38 47.15 14.46
SBIN.NS 941.1 23.23 27.4 33.83
TATASTEEL.NS 156.75 51.83 39.95 18.75
TCS.NS 481.7 55.27 48.84 20.59
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