Three strategies for near future.

NIFTY could be just 100 points away from probable  reversal point.
If it goes near 8550 and then 8500 June expiration PUT will be trading around 120/-
IT and pharma could do well because USD might cross 65 in coming weeks.
With this background strategy could be as follows:

Strategy 1:
Sell INFY 2000 PUT around 45 of June expiration.
Buy HCLTECH 1000 CALL between 4-5 of May expiry.

Strategy 2:
Buy 4 lots NIFTY 8500 PUT of June expiration only if it goes around 120-125.

In view of rate cut rumor by RBI banks stocks could show some momentum. So below is the strategy.
Strategy 3: Butterfly strategy of SBI
Sell 2 lots of SBI 300 CALLs around 5-6 of June expiration.
Buy 280 CALL of SBI (one lot) around 12-12.50 June expiration.
Buy 310 CALL of SBI (one lot) around 3.5 June expiration.

Maximum profit around 19000 and maximum loss could be 5800/-.


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

Trading strategy for the week starting from May 18

NIFTY has to cross various barriers before next up move. FIIs are not still very active but DIIs are buying like anything. Perhaps FIIs will return in to buying mode and NIFTY would go near 8700 very soon.

NIFTY resistances are
8320: 38.2% retracement from last fall
8420: 50% retracement
8521: 61.8% retracement.

Assuming NIFTY will continue it up move for sometime, one could have below strategy.
NIFTY:
As per OI strong support at 8000 and strong resistance at 8500

Sell 4 lots of 8000 PUT between 40-50 and Sell 4 lots of 8500 CALLs around 30-35
Your account should be credited by Rs. 7000-8000.

SBIN
It has very strong support near 270.

Sell 270 SBI PUT around 4-5
This should add credit balance more than 5000/-

DISHTV
It seems forming new base around 75

Sell DISHTV 75 PUT around 0.8-1.0, this will add around Rs. 3000/-

Now total credit balance is around 18000-19000/-

Media stocks are not doing well. Generally Media stocks perform when elections or any such event is around.
Since there is noting of that sort stocks like Zee could see further downside.

ZEEL

Buy 300 PUT of ZEEL around 8/-

NTPC
It is falling with volumes. Something must be wrong there.

Buy 135 PUT of NTPC around Rs.2.50/-

AXISBANK:

Buy Axisbank 580 CALL around 8-9/-

In short:
Trades should be as follows:

1. Sell 4 lots of 8000 PUTs between 40-50
2. Sell 4 lots of 8500 CALLs around 30-35
3. Sell 270 SBI PUT around 4-5
4. Buy 300 PUT of ZEEL around 8/-
5. Buy 135 PUT of NTPC around Rs.2.50/-
6. Buy  570 CALL of Axisbank around 12-13/-

Total investment in margin money could be around 2.5 lacs, but there will be credit balance in trading account.
Exit entire strategy if total profit is more than 2% on your investment, ie more than 6 to 7 thousand in next week.

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