First time lot of unwinding seen at 8000 and 7900 PUTs. FIIs were net sellers in cash yesterday, though in very small quantity. Heavy selling by FIIs in future segment.
Still the highest open interest in 8000 PUTs indicates very strong support around 8000.
Book profit in 7700 CALL sell positions.
No new trade in NIFTY.
One might see buying in NIFTY around 8000-8020 level. RSI (9 D) would be near 30 today, if NIFTY goes near 8000 and could experience bounce back.
SUNPHARMA
SUNPHARMA is facing FDA audit issues and stock may stumble further up to 760 within a day or two. They might receive warning letter from US FDA.
Though technically this should not affect much to the SUNPHARMA's business in US, trading community does not like to hear such news and share prices usually drop momentarily.
How to trade this view? There are multiple ways listed below in order of increasing risk.
Ranbaxy:
SUNPHARMA and Ranbaxy would go hand in hand for obvious reasons. But Ranbaxy is more of a trader's stock. Good volume in F& O.
It is trading within channel yet. RSI is near oversold region, so technical bounce back could be expected.
Those who would like to take bare position/(s) in SUNPHARMA could hedge the bet by buying Ranbaxy CALLs.
For example if one sells SUNPHARMA Future and if trade shows loss in first 30 minutes of entering in to the trade then it is advisable to buy 620 CALL of Ranbaxy and minimize the risk.
Disclaimer: This blog does not take any responsibility of your profit/loss
Still the highest open interest in 8000 PUTs indicates very strong support around 8000.
Book profit in 7700 CALL sell positions.
No new trade in NIFTY.
One might see buying in NIFTY around 8000-8020 level. RSI (9 D) would be near 30 today, if NIFTY goes near 8000 and could experience bounce back.
SUNPHARMA
SUNPHARMA is facing FDA audit issues and stock may stumble further up to 760 within a day or two. They might receive warning letter from US FDA.
Though technically this should not affect much to the SUNPHARMA's business in US, trading community does not like to hear such news and share prices usually drop momentarily.
How to trade this view? There are multiple ways listed below in order of increasing risk.
- Sell SUNPHARMA 860 CALL around Rs. 4/4.50.
- Buy 770 PUT around 10/-
- Buy 790 PUT between 18-20 and sell 760 PUT around 8. Maximum risk about Rs. 6000/-, profit potential 21000/-
- Sell FUTURE with SL around 817 in cash.
Ranbaxy:
SUNPHARMA and Ranbaxy would go hand in hand for obvious reasons. But Ranbaxy is more of a trader's stock. Good volume in F& O.
Those who would like to take bare position/(s) in SUNPHARMA could hedge the bet by buying Ranbaxy CALLs.
For example if one sells SUNPHARMA Future and if trade shows loss in first 30 minutes of entering in to the trade then it is advisable to buy 620 CALL of Ranbaxy and minimize the risk.
Disclaimer: This blog does not take any responsibility of your profit/loss
No comments:
Post a Comment