NIFTY, TATAMOTORS and APOLLOTYRES

NIFTY
FIIs are selling in huge quantities and DIIs are buying in equal quantities. NIFTY is not giving any direction. But fundamental rule in trading is one must have one view. Obviously one should be either bullish or bearish.

NIFTY is very near to support level ( 7840-7820), if it goes below 7800, one could see stiff downside till 7650. One could see reversal in short term down-trend from current level. However, one should not do any buying unless NIFTY crosses 7970-7975.  See chart.

In OI table one could see more of red spots than green. But still OI analysis is inconclusive. IVs of PUTs and CALLs have gone up. In percentage terms IVs of CALLs have gone up more than IVs of PUTs. It might indicate there is more CALL buying than PUT buying. From FII  data also it is clear, more than 2000 Cr worth options were traded on Friday and this number is at much higher side as compared numbers of recent past. But one should not read too much because it could lead to wrong conclusion unless NIFTY shows clear directional trend. Presently it is clear options are used for hedging by FIIs.

Among all this mixed cues, since bearish signals are more I would like to stay in bear camp.
Buy 7800 NIFTY PUTs.
Hold all bear positions such as BOI, DLF.

Tatamotors:
Tatamotors could go to 430 levels if it goes below ichimoku cloud and as a first step breaks Friday's low.
If it breaks Friday's low the one can set up bear spread strategy in Tatamotors.

Buy 470 PUT around 5.50 and Sell 460 PUT around 3.75.
Maximum loss per lot could be around 1750/- and maximum profit potential Rs. 8250/-

Apollotyres:
Bull spread strategy in Apollotyres.
This stock is recommended on all channels because rubber prices are at multi-year low. This stock gave break-out on Friday and all set for new highs.

Buy 230 CALL around 6/- and sell 240 CALL around 3.25. Maximum loss around 2750 and profit potential above Rs. 7000/-

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