BSE Sensex (9092.72) and Nifty (2755.10) closed 2.0% and 2.3% up last week.Nifty put-call ratio was 0.85.Support for Sensex is 8760 and for Nifty 2660.Resistance for Sensex is 9420 and Nifty is at 2870.Inflation was also under control 8.84 v/s 8.90 last week.Crude oil was at 53$.Market rose as Timothy Geithener was announced as next treasury secretory by U.S. government. Citi Bank bail out package of $26 billions also fuelled the buying in the market as bears chose to cut the positions.China reduced the bank rate which also helped markets to recover from low levels. Terrorist attacks in Mumbai in India on Thursday forced the authorities to keep the market closed.On Friday markets opened on nervous note but recovered on good global cues. Expiry day for the future and option settlement was also shifted from Thursday to Friday. Selling of FII was visible...Nifty 2400 put added open interest.SAIL and Bharti Airtel added open interest.
Strategy for Future Option players.
1)ICICI BANK(351.65) Lot Size-175 Shares.
Buy one call option of December month strike price 350@38.65 Rs.
Sell one call option of December month strike price 400@18.00 Rs.
Premium Paid=38.65*175=6763.75 Rs.
Premium Received=18*175=3150.00 Rs.
Net Premium Paid=6763.75-3150.00=3613.75 Rs.
Maximum Profit=400-350=50*175=8750.00-3613.75=5136.25 Rs.
Maximum Loss=3613.75 Rs.
Break-even=370.65 Rs.
2)ITC(173.60) December month future-Lot Size 1125 shares.
Buy one lot December month future@173.60
Sell one call option of December month strike price 180@6.00.00 Rs.
Premium Received=6.00*1125=6750.00 Rs.
Max Profit=180.-173.60=6.40*1125=7200.00+6750.00=13950.00 Rs.
Max loss=Unlimited.
Trading Idea
1)Reliance Capital(448.60)Buy this stock in decline and trade.
2)DLF(198.40)Buy this stock in decline and trade.
Trend of Major Stocks
STOCK TREND NO.OF Days Weekly Monthly
Trend Trend
ICICIBANK.NS Bulllish 2 Flat! Flat!
INFOSYSTC.NS Bulllish 5 Rising Falling
ITC.NS Bulllish 2 Flat! Flat!
MARUTI.NS Bulllish 5 Rising Falling
SAIL.NS Bulllish 5 Flat! Flat!
SATYAMCOM.NS Bulllish 3 Rising Rising
SBIN.NS Bearish 1 Falling Falling
TATASTEEL.NS Neutral 1 Flat! Flat!
TCS.NS Bulllish 5 Rising Falling
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 351.65 48.35 42.48 21.26
INFOSYSTC.NS 1243.85 51.09 48.49 28.66
ITC.NS 173.6 51.54 54.92 17.31
MARUTI.NS 533.55 39.3 42.37 31.39
SAIL.NS 66.65 50.47 38.55 34.62
SATYAMCOM.NS 242.9 37.27 41.18 30.84
SBIN.NS 1088.55 34.82 41.03 29.36
TATASTEEL.NS 151.4 37.76 30.58 38.33
