Again bad set of macro numbers viz IIP and CIP. But all analysts are convinced it is just an outlier and one should not pay too much attention to these numbers! According to trading community, our country is in right hands of Modi and Co and they will do everything right!! FIIs continued buying (net buyers) again in cash after being light for only couple of days.
This is a second set of macro showing nothing is drastically changing yet and NDA has to take some concrete steps to improve our economy. Two weeks ago you will recall, CAD had broaden. Had this would have happened in UPA regimen, NIFTY would have fallen by at least 100 points, however, NIFTY went up by 100 points next day of CAD broadening! One might not see that urgency tomorrow but it is clear NIFTY is in no mood of showing any correction. It might not go below 8020-8050 at the same time crossing 8250 on upper-side before this month expiry also looks bit difficult.
Rupee is depreciating, it will be difficult to control inflation (in spite of lower oil prices) in near term if rates are not adjusted to curb the inflation, but Government and RBI might not take unpopular decisions till Diwali and till Assembly elections at least.
Stick to a strategy of selling PUT 7900 and selling CALL 8300.
This is a second set of macro showing nothing is drastically changing yet and NDA has to take some concrete steps to improve our economy. Two weeks ago you will recall, CAD had broaden. Had this would have happened in UPA regimen, NIFTY would have fallen by at least 100 points, however, NIFTY went up by 100 points next day of CAD broadening! One might not see that urgency tomorrow but it is clear NIFTY is in no mood of showing any correction. It might not go below 8020-8050 at the same time crossing 8250 on upper-side before this month expiry also looks bit difficult.
Rupee is depreciating, it will be difficult to control inflation (in spite of lower oil prices) in near term if rates are not adjusted to curb the inflation, but Government and RBI might not take unpopular decisions till Diwali and till Assembly elections at least.
Stick to a strategy of selling PUT 7900 and selling CALL 8300.
HDFC:
Hold HDFC 1060 CALL.
Book profit when it would go near 1075 in cash in next couple of days. It could go to 1090-1093 in quick time. So part book at 1075 range and hold for next target 1090.
If unfortunately HDFC goes below 1030 in cash then exit from 1060 CALL position at marginal loss.
TCS:
TCS could benefit due to rupee depreciation. It has corrected reasonably recently and one can expect fresh buying near support level (see chart for demand level).
Bull spread strategy
Buy 2650 CALL near 26-28 and Sell 2700 CALL around 13-14.
Total risk will be about Rs. 1600/- per strategy, and profit potential of Rs. 4500/-.
To keep credit balance in trading account, one can sell couple of CALLs of 8300, which is trading near Rs. 14/-
If one could able to enter in one TCS 2650 CALL buy, one 2700 CALL sell and two 8300 NIFTY CALL sell contracts then it is very low risk, practically zero risk strategy with an investment of about Rs. 80,000/- in margin money. At end of the month or when TCS would go near 2700, profit could be above Rs. 5000/- to 6000/-. An investment period is about 10 days. Low risk and high reward.
Disclaimer: This blog does not take any responsibility of your profit/loss
No comments:
Post a Comment