Bullet Advisory Indian Stocks Weekly-indian Market Wait for Economic Bail Out Package

SE Sensex (8965.20) and Nifty (2714.40) closed 1.4% and 1.5% down last week.Nifty put-call ratio was 0.77.Support for Sensex is 8520 and for Nifty 2580.Resistance for Sensex is 9380 and Nifty is at 2840.Inflation was also under control 8.40 v/s 8.84 last week.Crude oil was at 43$.Market recovered from low levels on hopes of Repo and Reverse Repo cut by Reserve Bank Of India.Positive statement by Mr. Subbarao, Governer Reserve Bank Of India that fundamentals of Indian economy are strong and have minimal impact of global meltdown. prevented free fall in the market .Easing liquidity since mid November and steps to stimulate the economy some measures will be taken on Saturday 6th December also lended some support to the market.Late Friday evening Government reduced the price of petrol by 5 Rs/litre and diesel by 2 Rs/litre following reduced crude prices in international markets.NSE has announced to increase the lot sizes of Future & Option Stocks since value of most stocks has reduced drastically.DEFTY will also strat trading in the month of December which will help liquidity and increase the volumes.DEFTY is a NIFTY in Dollar term which will help FII’s to hedge NIFTY in dollar term. Selling of FII was visible..Nifty 2600 put added open interest.Tata Motors and ONGC added open interest.Reliance and L&T lost open interest.

Strategy for Future Option players.

Future Option na kheladio mate

1)RPL(72.50) Lot Size-1675 Shares.

Buy one call option of December month strike price 70@5.45 Rs.

Sell one call option of December month strike price 75@3.00 Rs.

Premium Paid=5.45*1675=9128.75 Rs.

Premium Received=3*1675=5025.00 Rs.

Net Premium Paid=9128.75-5025.00=4103.75 Rs.

Maximum Profit=75-70=5*1675=8375.00-4103.75=4271.25 Rs.

Maximum Loss=4103.75 Rs.

Break-even=72.45 Rs.

2)MTNL(73.55) December month future-Lot Size 1600 shares.

Buy one lot December month future@73.55

Sell one call option of December month strike price 80@1.55 Rs.

Premium Received=1.55*1600=2480.00 Rs.

Max Profit=80-73.55=6.45*1600=10320.00+2480.00=12800.00 Rs.

Max loss=Unlimited.

Trading Idea

1)ACC(427.05)Buy this stock in decline and trade.

2)ESCORTS(32.85)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND NO.OF Days Weekly Monthly

Trend Trend

ICICIBANK.NS Bulllish 3 Rising Rising

INFOSYSTC.NS Bearish 1 Rising Falling

ITC.NS Bearish 1 Rising Rising

MARUTI.NS Bulllish 3 Falling Falling

SATYAMCOM.NS Bearish 1 Rising Falling

SBIN.NS Bulllish 3 Rising Rising

TATASTEEL.NS Bulllish 3 Rising Rising

TCS.NS Bearish 1 Rising Rising

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 358.4 41.72 46.3 18.38

INFOSYSTC.NS 1134.5 39.17 39.58 23.7

ITC.NS 169.35 48.18 50.12 16.24

MARUTI.NS 490.65 40.94 38.55 32.48

SATYAMCOM.NS 225.15 35.96 36.92 31.46

SBIN.NS 1134.15 28.43 46.85 26.71

TATASTEEL.NS 182.5 40.93 45.51 31.86

TCS.NS 521.8 52.62 47.3 15.66