Maruti and Relinfra

Market went down like anything triggered by food security bill.
If there is short covering in next two days again it can reach up to 5440.

Maruti:
One might have to book loss. At just managed today to stay within Wolf wave pattern but it seems difficult to cross 1330 for break even.

Relinfra:
Buy 340 CALL between 2.5-3.00.
If market goes up expect target of 10.


Disclaimer: This blog does not take any responsibility of your profit/loss

MARUTI and TATASTEEL

Market may try and consolidate.  It will go up at least till expiry. It will be very volatile week and expect unexpected.

Maruti

Remain in trade with positive bias. Applying Wolfe Wave theory Maruti should take target of 1420-1440 in short time. Buy Maruti 1300 CALL in the range of 30-35. Those who are already in this trade better to hold Book part profit in the range of 50/56. Final target around 100-105!

https://docs.google.com/file/d/0B7ZW-6KNaQjsc2VBOVcwdzJtTDA/edit
https://docs.google.com/file/d/0B7ZW-6KNaQjsZlpITkpucnVQUDg/edit?usp=sharing

Tatasteel Bull spread strategy

It has given clear breakout from channel. Trading around 285. It is about to cross ichimoku cloud on daily chart. See the link.

Buy 295 CALL at around 3 and sell 305 CALL between 1 to 1.30.
Maximum loss could be 2000/- and maximum profit potential about 8000/-
Those who would can risk Rs. 3000/- can buy TATASTEEL around Rs. 3/-. Book profit at Rs. 4.50/5.00

https://docs.google.com/file/d/0B7ZW-6KNaQjsYkFYWTVfclY5dE0/edit?usp=sharing

Disclaimer: This blog does not take any responsibility of your profit/loss.

Apollo Tyres: Lottery stock option

Apollo Tyres

Buy 65 CALL of Apollo Tyres between 2 and 2.25.
Target 5.5/7.5


This is lottery option stock so invest only if your account has generated sufficient profit this month. Total investment will be around 8 to 9 thousands. Profit potential 8,000 to 20,000/-!!


Disclaimer: This blog does not take any responsibility of your profit/loss.

Maruti and IDFC

Market continued downtrend.
Lot of volatility.
Sell on rise market. Everybody is waiting for Fed minutes and QE tapering more certainty. A slight negative statement from Bernanke will slide market further.

If market goes down, banking will collapse again. Many stocks fallen today, all those stocks which would have benefited from Rupee fall could not stand tall either. It was selling all over the place. But like today morning their could be short covering rally and market might correct a bit. Look for selling opportunities at higher levels.

However, if tapering is postponed, bond buying continued by US in near future market will go up to 5540 in very short time.

Maruti :

Maruti did not go down much today and available at attractive valuation. NIFTY crashed 2% even after positive opening whereas Maruti was down by just quarter percent. It is very close to demand levels around 1260. Up and above if market shows correction Maruti will cross 1360/1400 very soon.
Buy 1300 CALL between 30-35.

IDFC:
Banking will crash sooner or later. Buy IDFC 100 PUT between 3.5-4.0.
IDFC will will touch 93 and opened below 94/93 then next support is near 89.



Disclaimer: This blog does not take any responsibility of profit/loss

Relax for rest of the month!

Any trader, should set a target for himself/herself.
A day trader should set target for him/her for the day, swing traders perhaps for the week and an option trader should set target for the month.
It is always important to be with the trend, it could be trading in index or it could be in any stock. In this month, unlike some earlier months we were with the trend from first week itself. So this month, followers of this blog must have earned much more than 5/10% on their investments already. In simple term Rs. 100,000 investment must have made you richer at least by Rs 5,000 to 10,000/-. It is more than 6 to 12 times of bank interest.

This is time to stop trading in the month. Exit from all positions and wait for the right opportunity again. There will be some lottery stocks for sure and we will take those trades in coming days. But first exit from all positions and ensure credit balance in the trading account.

Investors can start accumulating good stocks of companies with good corporate governance.
LIC Housing, FSL, ITC, TATAMOTORS, ICICIBANK are few examples, with 1 to 2 years horizon. Even LT and SBI are not bad to allocate some small percentage of funds. Between 5000-5500 of NIFTY valuation becomes attractive. If Rupee stabilizes around 60-62, new FII will invest in India. Even if Rupee strengthens 5% from here their investment will go up in dollar term, they will able to take out more number of dollars than they are investing today. Risk reward ratio becomes suddenly attractive of them. Perhaps recovery will be slow this time, unlike in April 2013 but ultimately investors have to come to India. So look for good stocks for real long term investment in coming weeks. Don't buy immediately tomorrow!!

Disclaimer: This blog does not take any responsibility of your profit/loss

JP Associate

Market did not care about negative news yesterday. This is first sign of positive momentum in market. FII are buyers. Perhaps market may open gap down tomorrow but there is high possibility of recovery. Still I hold view of strong resistance in the region of 5760/70. Nonetheless hedging with 5800 CALL options is must in this very uncertain situation about market direction.

Exit all short positions as soon as you get first chance to exit.

JP Associate is in downtrend and irrespective of market movement there is high possibility that stock would continue move south.

So with this bearish view:
Sell JP associate September Future at current market price around 33.5-33.7 and buy 32.5 August CALL around 2.50.
Execute both the treads simultaneously.
Maximum loss could be around 6000 but this trade has unlimited profit potential. If it touches previous lows around 28.5, before this month expiry profit could be more than 10000/-

OR
Simply buy 30.00 PUT of August expiry around 0.70/0.80. Maximum investment will be about 3200/- and profit will start if stock goes below 29.2.

Disclaimer: This blog does not take any responsibility of your profit/loss

Update and Sell RELINFRA; Hedge shorts with NIFTY CALLs

This seems to be short term bull run now. But resistance is approaching.

Book profit in DLF strategy. Exit from both 160 CALL and 110 PUT.
Hold TATAMOTORS strategy, of 280 future sell of September and 280 August CALL buy. This strategy is making about 5000/- loss presently, but still worth holding.

Exit TCS at cost.

SBI 1550 PUT: Exit around 48-50.

Hold RELINFRA 370 CALL sell till it crosses 17 or 375 in cash. Everyday stock is going up by 10/20 Rupees and one might even see this level tomorrow. Risk taker can hold as stock has given very good run up , this could be only technical bounce and may not be a value buying. Normally in this situation, investors will not hold such a stock, this must be mere trading and traders will start booking profit soon.

Sell RELINFRA 410 CALL between 2-2.25.

It is important to note FII turned buyers since yesterday, perhaps another bull run is on the card, better to exit all bear positions for sometime and sit on cash till next week. There is no fundamental reason for market to go up, but at least four times market has gone up from 5500- 5550 level. It did it again. If it crosses 5750/5760 tomorrow then we can see another 200/300 points upside in NIFTY in August.

Those who would like to hedge short positions can buy NIFTY 5800 CALL between 54 and 55.5. If NIFTY crosses 5725 then only 5800 CALL will be above 54 and that could be the right entry. But please understand this is only for hedging as market is already in strong resistance arena and might start correcting unless there is some other trigger for up-move.


Disclaimer: This blog does not take any responsibility of your profit/loss

Update

Book profit in SBI
Book profit in Heromotocorp strategy. Hold TATAMOTORS strategy recommended yesterday.
Book profits in CALL sell options of Reliance, TATAMOTORS.
Exit TCS 1900 CALL sell at cost.

Hold RELIANCE INFRA

Hold BHEL, if not booked profit earlier. All metal stocks did well today. BHEL may go down again till 105 levels in cash and option price would be near to cost. Exit at cost.

Disclaimer: This blog does not take any responsibility of your profit/loss

Strategies for the week

NIFTY is showing some sign of reversal. But it will be difficult for NIFTY to sustain at higher levels. It has formed double top on weekly and daily chart which indicates NIFTY target of 5200 in near future unless reversal continues and NIFTY goes above 5690/5700 on EOD basis. NIFTY should be considered in down trend till then.

DLF:
DLF quarterly results are on Monday. Company time to time declares loan restructuring ideas and  exiting from non-core businesses and stock moves up on such news.
Now also there is possibility that company may announce something in quarterly results about loan rearrangement and stock will move up to 160 in spite of bad results like Ranbaxy did on Friday.

If this does not happen stock could be double digit stock very soon.

Strategy in view of this.
Buy 110 PUT in the range of 2-2.50 and Buy 160 CALL in the range of 2-2.50.
Book profit at 6/6.50 immediately after outcome of result or exit at loss.

Alternatively risk takes can buy only 110 PUT and hold till descent profit; maximum loss could be 2000/2500.

SBI:

SBI quarterly results are also expected on Monday. Buy SBI 1550 PUT between 40-45 and book profit around 60/62. If it convincingly crosses 62 wait till 80/90 for profit booking.

Both these DLF and SBI options are costly due to IV (implied volatility) went up ahead of results.
Since SBI is in down trend more risk takers can sell SBI 1600 CALL between 115-130 and pocket the premium. In high IV, "call sell" will be more beneficial if view turns (down trend) right. Generally, IV will go down very quickly after results and profit will be more. Also loss will start only if SBI closes above 1720/1730 at expiry.


Portfolio for next two weeks.

Tatamotors:
Sales in domestic market is going down. Slowdown in China would hamper export. Stock has strong support in the range of 253-257 and resistance at 330. If it breaks support it could go much further down.

Sell TATAMOTOR September future at market price around 280/285 and buy 280 TATAMOTOR August CALL between 8-11. Execute both tends simultaneously.
Depending upon the prices you would able to get, maximum loss could be around 10000/- but this trade has unlimited profit potential.
Break-even would be at around 270.

HEROMOTOCORP
Stock is in up trend even in falling market. It will touch 1940 very soon.
Buy August future at current levels around 1850-1860 and Buy 1850 August PUT between 50-57. Execute both the trades simultaneously.
Depending upon the prices you would able to get, maximum loss could be around 6500/- but this trade has unlimited profit potential.
Break-even would be at around 1900/1905.

Disclaimer: This blog does not take any responsibility of your profit/loss

Tatamotors

TATAMOTORS
Buy 280 PUT  between 12 to 12.50. Target 15.30-15.50. SL 8.30/9.00
Exit the trade today even if it is at loss because value of option would go down on Monday due to holiday tomorrow.

If you think you have generated adequate profit this month/week then don't enter in this trade. Or exit as soon as SL hits.

Disclaimer: This blog does not take any responsibility of your profit/loss

Only update, no new trades for rest of the week.

Keep booking profit in all bear positions. This is curtailed week and most of the followers of the blog must be already in green. It is important to ride on trend and fortunately it happened in this series right in the beginning of the series.
To secure gained profit must be the prime objective now, even if trend reverses during rest of the month.

DLF:
Results are on next Monday, risk takers can decide to hold 100 PUT till quarterly result are known on next Monday. Those who don't want to wait must book profit. Before decision making look at your balance sheet of this month.

Tatamotors:
Lot of volatility ahead of results. Implied volatility has gone up like anything and hence 330 PUT is being traded at same level of our buying price even if stock price went down. After results maybe pricing will be again in the normal range and it would be time to book profit.
Market is not expecting very good results, however, in spite of this if numbers are good, the stock will rally up to 320 levels.

TCS:
Hold till it crosses 1910 on EOD basis before you decide to book a loss.

Both TATAMOTORS and TCS are being considered as safe heavens in falling market by investors. Lot money presently being diverted in these two stocks.


Disclaimer: This blog does not take any responsibility of your profit/loss

Buy PUTs

Buy PUTs. This seems to be Sell on Rise market.
Buy 5600 Put in the range of 70-80. Start booking profit from 90 onward.
Buy BHEL 100 Put between 3.00-3.35.
FII sold today. PCR is just near 1, it could go to 0.8 and it means 70/80 points dip in NIFTY likely.
But very soon NIFTY will be in oversold region and could show bounce upto 5850.

Hold all CALL sell position. TCS is not in mood to show any correction, going up by 1 to 1.5% daily. If TCS crosses 1900 with this speed then there is reason for concern and it is advisable to book loss.

Disclaimer: This blog does not take any responsibility of your profit/loss

Some very low risk option trades to secure profit in this month.

Everybody is having very negative sentiment about market. Lot of investors/MF managers lost money as only few handful of stocks are doing well. Nowadays NIFTY is not real representation of broader market.

This month is really good so far for iOptionTrade blog followers.
Most of the calls are already in the money and keep booking profits as appropriate. Do not take any major risk which would lead to substantial loss. If one would have entered in reasonable number of trades recommended on this site, his/her account must be in green.

Hold all CALL sell recommendations given earlier. TCS is going up, but it has resistance in 1850-1900 zone and will find it difficult to cross 1900. If it crosses 1900 in this trading week, it is better to book loss in TCS. Many investors are diverting funds to TCS assuming it will be safe investment opportunity, even if it is trading at very high levels. We see at least 0.5% upside in stock everyday.

Some of the low risk strategies are as below:


ITC
Sell ITC 380 CALL between 1.25-1.50

BankNifty (BN)
Buy OTM PUTs in BankNifty. Generally OTM PUTs should not be bought, but it makes sense here.
For example 9300 PUT in the range of 100-125.
Book profit if it goes to 180-225.
It is highly unlikely that BN will go below 9200 before this expiry, so book profit as soon as there is more than 2% gain over investment.

Infrastructure stocks are collapsing.
DLF:
DLF is trading at very low levels. Book profit in all earlier strategies of DLF and simply buy 100 PUT between 2.00-2.50/-. DLF could go to sub-hundred levels before this expiry and one can ride on this fall. This is again OTM PUT. But IV is above 88 and this trade could lead to good profit.

I would suggest chose only one option trade between DLF and BN.

RELINFRA:
Sell RELINFRA 370 CALL between 3.50-4.00
Less risk takers can sell RELINFRA 400 CALL between 1.50-2.00

Disclaimer: This blog does not take any responsibility of your profit/loss