After a descent profit so far, one can think of lottery trade for the month.
JP ASSOCIATE
NIFTY had not moved so much but JP went up more than 8%. This could be purely news based, about which, I must confess, I have no clue.
This is purely based on chart analysis.
I could see many positives here than negative.
Stock is now trading above 50 day moving average after long time.Time and again this stock is taking trend-line support and moving up in spite of not so encouraging quarterly results.
Last year, in last week of October stock was trading around same price range,one fine day crossed 50 d moving average and shot up to 48-49!
Will it do it again this year? I don't know but if your monthly profit supports then it is worth investing small amount in this lottery trade.
What are negatives? It is touching ichimoku cloud at lower end, it could be a reversal point. It is trading in overbought region. But it has already entered in to the cloud and being traded at overbought region for long time by now.
So it is worth taking risk.
Buy JPASSOCIAT 37.5 CALL near 0.60.
Investment of Rs. 4800-5000 could provide very good profit.
To recover this cost one can sell four lots NIFTY 8450 CALLs. NIFTY is trading at all time low IV, below 10. But still it is enough to get money from the market and not investing anything from the pocket.
If one decides to calculate delta of this strategy it will be positive.
Nevertheless, if NIFTY crosses 8450 on EOD basis then exit from NIFTY CALL sell positions. Once NIFTY crosses 8450, it could take another 100 point stride in no time. My stomach feeling is such a jump is long due. NIFTY is there where it was before 8 trading sessions and this is unbelievable under present bullish scenario. It must bounce, unless it fills downside gap around 8183, which is unlikely in present circumstances.
See chart attached:
In short, recommendation for next week:
Buy JPASSOCIAT 37.5 CALL near 0.60.
Sell four lots of 8450 CALLs near Rs. 50. And if your profit so far is good enough to absorb JP CALL cost then don't even think of selling NIFTY CALLs to cover the cost of JP.
If you are entering in to both trades, JP and NIFTY then always compare total profit/loss in the strategy and decide exit point.
Nowadays, I am not following stock market daily and my next post will be by next weekend.
BTW JP looks good even for long term perspective. Downside is very minimum and stock is trading much below it's book value. It could be good stock from long term investment perspective.
Disclaimer: This blog does not take any responsibility of your profit/loss.
JP ASSOCIATE
NIFTY had not moved so much but JP went up more than 8%. This could be purely news based, about which, I must confess, I have no clue.
This is purely based on chart analysis.
Stock is now trading above 50 day moving average after long time.Time and again this stock is taking trend-line support and moving up in spite of not so encouraging quarterly results.
Last year, in last week of October stock was trading around same price range,one fine day crossed 50 d moving average and shot up to 48-49!
Will it do it again this year? I don't know but if your monthly profit supports then it is worth investing small amount in this lottery trade.
What are negatives? It is touching ichimoku cloud at lower end, it could be a reversal point. It is trading in overbought region. But it has already entered in to the cloud and being traded at overbought region for long time by now.
So it is worth taking risk.
Buy JPASSOCIAT 37.5 CALL near 0.60.
Investment of Rs. 4800-5000 could provide very good profit.
To recover this cost one can sell four lots NIFTY 8450 CALLs. NIFTY is trading at all time low IV, below 10. But still it is enough to get money from the market and not investing anything from the pocket.
If one decides to calculate delta of this strategy it will be positive.
Nevertheless, if NIFTY crosses 8450 on EOD basis then exit from NIFTY CALL sell positions. Once NIFTY crosses 8450, it could take another 100 point stride in no time. My stomach feeling is such a jump is long due. NIFTY is there where it was before 8 trading sessions and this is unbelievable under present bullish scenario. It must bounce, unless it fills downside gap around 8183, which is unlikely in present circumstances.
See chart attached:
Buy JPASSOCIAT 37.5 CALL near 0.60.
Sell four lots of 8450 CALLs near Rs. 50. And if your profit so far is good enough to absorb JP CALL cost then don't even think of selling NIFTY CALLs to cover the cost of JP.
If you are entering in to both trades, JP and NIFTY then always compare total profit/loss in the strategy and decide exit point.
Nowadays, I am not following stock market daily and my next post will be by next weekend.
BTW JP looks good even for long term perspective. Downside is very minimum and stock is trading much below it's book value. It could be good stock from long term investment perspective.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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