Market turned down on Friday and such a stiff down side moment was not expected.
One can assign any reason, something is at decade low and something is at year high but it seems on Friday it was simple profit booking day.
FIIs took out 1600 cr in a single day. This was unusual, though in recent days there were some incidences of withdrawal by them it was never in huge quantity.
NIFTY has suddenly reached in the region of 5980. Remember NIFTY turned back three times from 5970- 5930 level to 6100. It could do it again too. Let us not conclude anything on one day drop.
Strategies for June.
L & T
Buy L & T 1400 PUT of June expiry between 45-47.
Total investment will be about 11500/-
To have credit balance in your trading account sell 1360 CALL of LT, June expiry between 85-95. Kindly do this in limit order as there is not much liquidity in this option contract.
If one could sell 1360 call at about Rs. 90 then there will be credit balance of about Rs. 45/ share ie Rs. 11250/- per lot!
If LT goes down to 1350 level in cash, exit from both trades to gain profit. SL 1450 in cash. It means if LT touches 1450 in cash exit in all trades, there will be about 4000-5000 loss, if it takes 2 weeks to reach 1450.
ICICIBANK
Bear Spread strategy:
Buy 1140 PUT of June expiry at 30
Sell 1080 PUT of June expiry at 11
Maximum loss 4750 Maximum profit if ICICI closes below 1080 will be 10250/-
One need not wait till expiry but can book profit when there is 10% gain.
Tatamotors
Bull Spread strategy:
Buy Tatamotors 310 Call of June expiry @ 16/-
Sell Tatamotors 330 Call of June expiry @ 7/-
Maximum loss could be Rs. 9000 and maximum profit potential Rs. 11,000/-
To have credit in your account Sell Tatamotors 300 CALL of June expiry @ Rs. 6/-
Exit this strategy if Tatamotors goes below 291 in cash.
For cash segment:
Buy GSK at around 2500 for 15 days, and book profit if there is 10% gain.
Buy Britannia at 725 and hold for 15 days, book profit if there is 10% gain.
Disclaimer: This blog does not take any responsibility of your profit/loss
One can assign any reason, something is at decade low and something is at year high but it seems on Friday it was simple profit booking day.
FIIs took out 1600 cr in a single day. This was unusual, though in recent days there were some incidences of withdrawal by them it was never in huge quantity.
NIFTY has suddenly reached in the region of 5980. Remember NIFTY turned back three times from 5970- 5930 level to 6100. It could do it again too. Let us not conclude anything on one day drop.
Strategies for June.
L & T
Buy L & T 1400 PUT of June expiry between 45-47.
Total investment will be about 11500/-
To have credit balance in your trading account sell 1360 CALL of LT, June expiry between 85-95. Kindly do this in limit order as there is not much liquidity in this option contract.
If one could sell 1360 call at about Rs. 90 then there will be credit balance of about Rs. 45/ share ie Rs. 11250/- per lot!
If LT goes down to 1350 level in cash, exit from both trades to gain profit. SL 1450 in cash. It means if LT touches 1450 in cash exit in all trades, there will be about 4000-5000 loss, if it takes 2 weeks to reach 1450.
ICICIBANK
Bear Spread strategy:
Buy 1140 PUT of June expiry at 30
Sell 1080 PUT of June expiry at 11
Maximum loss 4750 Maximum profit if ICICI closes below 1080 will be 10250/-
One need not wait till expiry but can book profit when there is 10% gain.
Tatamotors
Bull Spread strategy:
Buy Tatamotors 310 Call of June expiry @ 16/-
Sell Tatamotors 330 Call of June expiry @ 7/-
Maximum loss could be Rs. 9000 and maximum profit potential Rs. 11,000/-
To have credit in your account Sell Tatamotors 300 CALL of June expiry @ Rs. 6/-
Exit this strategy if Tatamotors goes below 291 in cash.
For cash segment:
Buy GSK at around 2500 for 15 days, and book profit if there is 10% gain.
Buy Britannia at 725 and hold for 15 days, book profit if there is 10% gain.
Disclaimer: This blog does not take any responsibility of your profit/loss
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