INFY and RELCAPITAL

NIFTY has very strong supply zone around 7640 and it might not be crossed very easily.
One should wait for trade in NIFTY till the clarity in direction.

INFY
One can buy INFY 1160 CALL and sell 1220 CALL.
Maximum loss could be around 11000/- but profit potential is Rs. 20000/-

Falling Rupee could help the stock. Retracement and Cup and Saucer pattern should take the stock to 1220-1230 level very soon.

Reliance Capital.

There could be very quick trade here.

RSI cross over has happened very recently. Stock is near oversold region.

Stock has turn back yesterday from 389-90 region, which was 38% retracement from last fall. If it crosses 390/- then for short term target should be 405 and then 422/-

Buy 390 CALL around 19.20-19.50.

Exit on same day and book profit.

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

Low risk trade in DishTV

NIFTY could show some bounce till 7600-7640 in short time.

FIIs are selling and DIIs are buying in more quantities than FIIs. This situation may not last long. Either FIIs start buying or NIFTY would continue downtrend soon.

For Monday, one can buy NIFTY future of February expiration and buy PUTs as an insurance. Assuming NIFTY would open as gap up one can buy NIFTY future of February expiration and Buy 7400 PUT of January expiration. Of course, PUT will be cheaper, and hence if  one gets it (7400 PUT) around Rs. 35-45 then he/she can buy two lots.

As soon as NIFTY shows sizable profit 1.5% to 2%, exit from NIFTY and one lot of PUT. Entire trade will be in profit by then.

If someone does not want to take risk in NIFTY then low risk trade would be in DishTV

Buy DishTV 90 CALL around 0.70-0.80. Target Rs. 1.90.
Risk around Rs. 3500/- to Rs. 4000/-



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

TATACOMM

Few new trades:
NIFTY is continuing its downward movement.
INFY: Price did not reach and hence we did not enter in to the trade.
BN: We are holding.

New Trade:

Tatacomm:
Sell Tatacomm future.
Buy 400 CALL around 12-14, or buy it whenever one would sell future.
Target Rs. 340/-

If target his then profit potential around 50000/- or maximum loss could be limited to premium paid ie about 15000/-

Stock should go below 392 for fast slide towards target.

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

INFY and Bank NIFTY

NIFTY is at major support zone. ie 7430-7400. If it is broken stiff fall is possible. NIFTY could touch 7000!
FIIs are selling in huge, DIIs are buying though! FIIs are selling continuously for last more than one and half month.
http://craytheon.com/charts/fii_dii_nse_bse_trading_chart_graph.php#

Bank NIFTY is more vulnerable than NIFTY.

INFY:
CMP: 1143
Buy above 1163 (in future) and buy PUT of strike price 1160 around 15-16.

Reasons:
RSI breakout in daily chart. Long term trend-line support is around 1200.

IVs of CALLs are more than PUT IVs.

Therefore target = 1200/-


Bank NIFTY:
CMP: 15206
Sell Future at market price and buy CALL around market price.
For example Sell Future at CMP and Buy call of strike price 15200 at around 280/-

Notice fresh breakdown in RSI
As per OI table if 15000 is broken then next stop will be only around 14500.
PCR is 0.69 and still some downside potential.

Target 14325

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

Buy Ashok Leyland Future and Buy 92.5 PUT

NIFTY failed to sustain gains.
DOW and other global indices are in red while I am writing the blog. No recovery is seen.

Both stocks recommended yesterday did well and provided profit booking opportunity. Powegrid had reversed from 150% retracement mark. Maybe it could provide an another opportunity tomorrow!

AshokLeyland:
This might touch 100 again.
Lot of support around 90, however, at the same time resistance around 95. But stock is trading at higher range in spite of market correction. If NIFTY recovers from here, it will be good for the stock too.

PCR is around 0.65 and indicates very limited downside potential.
One can buy Future and sell 92.5 PUT around 2.50-2.65.
Maximum loss could be around 15000/- but unlimited profit potential.


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

TVS MOTOR and POWERGRID

NIFTY is in down trend.
As per OI analysis support seems to be at 7420-7430.

PCR is 0.88 also suggests some downside is possible. PUTs are unwinding, FIIs are selling and hence NIFTY will slide to some extent.

Two stocks still looks promising for the month.

TVS MOTOR

Buy 290 CALL around  6.65 and sell 310 CALL at around 1,65.
Maximum profit Rs. 30000/-, maximum loss Rs. 10000/-

RSI is above 50 in all time-frames. It has given breakout in daily chart. Stock is trading above 60 days EMA.
Resistance could be around 305 based on OI analysis of the stock, The long time trend line resistance is around 307.
PCR is about 0.65 and indicates reversal up to at least 305-307.

Target: 305-307

POWERGRID

Buy Future and sell PUT of 140 strike price.
Maximum loss could be about Rs. 12000/-

RSI above 50 in all time frames and breakout in daily time frame.
PCR is 0.24. This is unusually low.
IVs of CALLs are higher than IVs of PUTs. This is also very uncommon and suggests reversal.

Retracement target is around 148-149.


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

Strategy: LT

NIFTY is in negative territory.
If it goes below 7730 (approximate Bollinger band support), then further slide is likely.
S&P 500 is below 2000 after long time (while I'm writing this blog post) and historically it had reversed from this range. Keep an eye on S &P 500. If you see tomorrow morning it is substantially below 2000 then don't continue your long positions. If it is above 2000-2010, reversal is possible from this level of NIFTY.

LT
Sell Future and buy CALL 1250. Maximum loss will be around 4500 but unlimited profit potential.
If LT opens below 1250 or goes below 1250 tomorrow (Tuesday 5 Jan 2016), then only enter in to the trade.

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