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
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
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