NIFTY is still in range and shows confusion among traders. There is no new trigger for movement in either direction. Better than expected GDP and spurt in EU, US markets might see gap up opening on Monday.
ICICI Bank strategy update:
Bank NIFTY is not participating from up-move from 5930 NIFTY level, if it does after IIP and inflation numbers by mid next week we might get chance to exit ICICI strategy in profit. Break-even point could be near 990/995 with present IV and see an opportunity to exit if market opens gap up and ICICI bank participates in the rally. ICICI bank showed signs of recovery on the day we entered in to the strategy but since then it is stuck in to the range.
Exit the strategy if it goes below 930 in cash or even one can hold till month end if he/she is willing to risk about Rs. 3000 and hope after IIP and inflation numbers ICICI bank crosses 1030 and there could be an outside chance of booking handsome profit!
One can square off 1050/1040 CALLs and buy 1020 CALLs of equal quantity to maximize profit.
TCS
TCS is showing weakness after results, even-though results were good. But this is usual profit booking. It has fallen due to lack of open interest and fall is about 8% from the top.
It has reached support, if it bounces back from the support, it could easily cross 2300 in very near term. Anyway it is good stock for long term investment (like ICICI bank) at current levels and investors would find this price attractive. Weak Rupee will also support the upward movement.
Those who are willing to risk Rs. 5000/- below is the best strategy.
Sell TCS Future at current level around 2150, one lot ie 125 quantity.
Buy TCS 2200 CALL around current level ie say 32-34 level but in higher quantity ie 5 lots, 625 quantity.
Sell TCS 2050 PUT around 17-18, one lot ie 125 quantity.
Maximum loss could be Rs. 5000-5500, excluding brokerage. Total investment including margin money will be approximately 70000-80000/-
Break-even point could be around 2180 in next few trading sessions depending upon IV, and 2210 at the time of expiry.
If TCS takes support and goes near 2300 then profit potential is about 40000 to 50000/- per strategy.
Disclaimer: This blog does not take any responsibility of your profit/loss
ICICI Bank strategy update:
Bank NIFTY is not participating from up-move from 5930 NIFTY level, if it does after IIP and inflation numbers by mid next week we might get chance to exit ICICI strategy in profit. Break-even point could be near 990/995 with present IV and see an opportunity to exit if market opens gap up and ICICI bank participates in the rally. ICICI bank showed signs of recovery on the day we entered in to the strategy but since then it is stuck in to the range.
Exit the strategy if it goes below 930 in cash or even one can hold till month end if he/she is willing to risk about Rs. 3000 and hope after IIP and inflation numbers ICICI bank crosses 1030 and there could be an outside chance of booking handsome profit!
One can square off 1050/1040 CALLs and buy 1020 CALLs of equal quantity to maximize profit.
TCS
TCS is showing weakness after results, even-though results were good. But this is usual profit booking. It has fallen due to lack of open interest and fall is about 8% from the top.
It has reached support, if it bounces back from the support, it could easily cross 2300 in very near term. Anyway it is good stock for long term investment (like ICICI bank) at current levels and investors would find this price attractive. Weak Rupee will also support the upward movement.
Those who are willing to risk Rs. 5000/- below is the best strategy.
Sell TCS Future at current level around 2150, one lot ie 125 quantity.
Buy TCS 2200 CALL around current level ie say 32-34 level but in higher quantity ie 5 lots, 625 quantity.
Sell TCS 2050 PUT around 17-18, one lot ie 125 quantity.
Maximum loss could be Rs. 5000-5500, excluding brokerage. Total investment including margin money will be approximately 70000-80000/-
Break-even point could be around 2180 in next few trading sessions depending upon IV, and 2210 at the time of expiry.
If TCS takes support and goes near 2300 then profit potential is about 40000 to 50000/- per strategy.
Disclaimer: This blog does not take any responsibility of your profit/loss
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