Market goes up on rumors. So buy on rumors and sell on news might continue this week and early next week. Traders will buy on rumors of good IIP, inflation data on Tuesday June 11 and rate cut by RBI on June 17.
It could even give gap up opening based on global scenario and better unemployment data in US ie more jobs in US for US nationals!! Market can find any reason, when it is driven by liquidity and it if for analyst and columnist to find reason for the same. Also falling Rupee will benefit IT, export oriented Pharma companies, MNC stocks and it will help market sentiments. FII again bought in cash segment on Friday, though volume was low. So best guess is market will move up on Monday.
For bulls to come back, market has to go above 5775 on EOD basis and for bears it should close below 5840 on EOD basis. Any long or short position within the range could be risky. Next trade should be taken on Tuesday after IIP data.
One trade looks promising that is State Bank of India, SBIN.
It is presently being traded near 2015 in cash. After these three events mentioned above it will either go up by Rs. 100 or shall come down by Rs. 100.
So one can buy 1950 PUT in the range of 32-38 and Buy 2100 CALL in the range of 35-40.
If one comes out after all these events ie by next Tuesday/Wednesday, trade will be definitely in profit or in worst case it could be at marginal loss.
Break-even point will be about Rs. 80. Or SBI must close either below 1930 or above 2095 to generate profit at last day of this month's settlement date.
Anytime if trade gives more than 10% profit then it is better to book the profit.
Disclaimer: This blog does not take any responsibility of your profit/loss
It could even give gap up opening based on global scenario and better unemployment data in US ie more jobs in US for US nationals!! Market can find any reason, when it is driven by liquidity and it if for analyst and columnist to find reason for the same. Also falling Rupee will benefit IT, export oriented Pharma companies, MNC stocks and it will help market sentiments. FII again bought in cash segment on Friday, though volume was low. So best guess is market will move up on Monday.
For bulls to come back, market has to go above 5775 on EOD basis and for bears it should close below 5840 on EOD basis. Any long or short position within the range could be risky. Next trade should be taken on Tuesday after IIP data.
One trade looks promising that is State Bank of India, SBIN.
It is presently being traded near 2015 in cash. After these three events mentioned above it will either go up by Rs. 100 or shall come down by Rs. 100.
So one can buy 1950 PUT in the range of 32-38 and Buy 2100 CALL in the range of 35-40.
If one comes out after all these events ie by next Tuesday/Wednesday, trade will be definitely in profit or in worst case it could be at marginal loss.
Break-even point will be about Rs. 80. Or SBI must close either below 1930 or above 2095 to generate profit at last day of this month's settlement date.
Anytime if trade gives more than 10% profit then it is better to book the profit.
Disclaimer: This blog does not take any responsibility of your profit/loss
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