FIIs are still on buying spree. It is difficult to believe Indians are not having faith in market but FIIs are investing heavily in Indian market. They did record buying on Friday. This is not very good situation though. But I guess market will react positively to this on Monday. So as usual no trade in NIFTY but more stock specific here.
Sell 740 CALL of KOTAKBANK at 2/-
It is very easy to gain Rs. 1000/- over an investment (margin money) about 50 K in next 18 days, excluding brokerage. Including brokerage you may get about Rs. 775/-. This is 30% return on investment.
Stock is retracing from it's earlier high about 695 and it is highly unlikely that it would reach 740 in next 18 days. Probability calculator shows less than 10% chances of reaching 740 before this expiry.
Bear Spread strategy.
IT stocks HEXAWARE and TCS have gone up in recent past in spite of NIFTY going down.
However as per ichimoku cloud, HEXWARE is in strong downtrend. Stock has very high IV. It has not yet reached in overbought region as per RSI or CCI but it will not take time to do so. The stock has more potential to go towards 75 than towards 85. It has resistance around 85.50 and presently stock is trading near 81-82.
Buy HEXAWARE 80 PUT @ 3.35 and Sell HEXAWARE 75 PUT @ 2.1.
Maximum loss 2500 and maximum profit 7500. Risk reward ratio is very good.
I would recommend exit the trade if you earn smart gain of about 3% during the week and don't wait stock to reach 75, it may not happen before expiry.
Sell 740 CALL of KOTAKBANK at 2/-
It is very easy to gain Rs. 1000/- over an investment (margin money) about 50 K in next 18 days, excluding brokerage. Including brokerage you may get about Rs. 775/-. This is 30% return on investment.
Stock is retracing from it's earlier high about 695 and it is highly unlikely that it would reach 740 in next 18 days. Probability calculator shows less than 10% chances of reaching 740 before this expiry.
Bear Spread strategy.
IT stocks HEXAWARE and TCS have gone up in recent past in spite of NIFTY going down.
However as per ichimoku cloud, HEXWARE is in strong downtrend. Stock has very high IV. It has not yet reached in overbought region as per RSI or CCI but it will not take time to do so. The stock has more potential to go towards 75 than towards 85. It has resistance around 85.50 and presently stock is trading near 81-82.
Buy HEXAWARE 80 PUT @ 3.35 and Sell HEXAWARE 75 PUT @ 2.1.
Maximum loss 2500 and maximum profit 7500. Risk reward ratio is very good.
I would recommend exit the trade if you earn smart gain of about 3% during the week and don't wait stock to reach 75, it may not happen before expiry.
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