New series has started.
Everything in this series will be governed by RBI policy meeting on Tuesday. Market could take a decisive direction after that meeting. Though RBI can not make reduction in interest rate, and since no change in rate is already factored in present market price, there might not be big turbulence after Tuesday. However, if RBI makes some positive statements as guidance such as RBI will do rate cut by end of the year or after Rupee stabilization etc., market will certainly cheer that.
NIFTY is in the range of 5500-6300 for several months now. It has to break one way or other. It is more possible it will give breakout at upper side, because in spite of all negative macros our NIFTY is holding near 6000 which is not far away from all time high. FIIs are selling but profit booking is very slow and cautious by them. It means they are expecting big jump very soon.
In near term also market might go up. A lot money is being invested in market and it is evident from the volume in trading in recent past. There will be preparation for election soon and lot of money will flow in to the system, it will directly or indirectly flow in to the market.
For safe trading strategies first week must be used for CALL sells.
One has to look for stocks with low implied volatility. One can wait till RBI policy and then take CALL sell positions or alternatively take half the positions now and average half positions after the policy meeting on Tuesday if market goes up. If market (and of course stocks chosen) goes down, anyway you will be in profit.
TCS:
TCS has given good run up in last series. It has very strong resistance in 1800-1900 region.
Sell TCS 1900 CALL between 7-8. Margin money about 50000/ lot and chances of earning 1750-2000 in next 30 days is more than 90%
More than double the bank interest rate.
Reliance:
Reliance could not convincingly break 920-930 resistance even on rally last month.
Sell Reliance 960 CALL between 7-8. Margin money could be between 25000-30000/-. You will able to earn 1750/2000 in next 30 days.
This earnings should be more than three times bank interest.
Tatamotors
Tatamotors is also in the range for some time now and it is not crossing 330. It is fair to assume with low implied volatility it might not cross 330 in this series also.
Sell TATAMOTORS 330 CALL between 2-2.50
Margin money 35000/- and earning will be 2000 to 2500 by end of 30 days.
Assuming one enters in trade of one lot of TCS, two lots of Reliance and one lot of Tatamotors, total investment will be between 140,000 to 150,000 in terms of margin money and earnings by August 29 will be between 7000 to 8000/-. This is very descent return on investment.
NIFTY:
Keep averaging NIFTY 6400 September CALLS
Sell 6500 NIFTY October CALLs in the range of 35-40.
JPASSOCIATE:
This stock is in downtrend for long time.
Buy JPASSOCIAT 40 PUT between 3 to 3.10. There is lot of open interest in 40 PUT.
Investment 12000. Exit anytime after option price reached above 4.00. It has trend line support near 37.
PNB:
Ahead of RBI policy review buy PNB 480 PUT between 5-6. This is out of money PUT buy and generally as a rule one should not buy OTM PUTs. However, in this specific case total investment will be about 2500-3000 and if there is slight negative news on Tuesday, PNB will plunge and give good profit on Tuesday. Otherwise exit the trade by weekend.
BankNifty:
Book part profit at current levels between 350-400.
Disclaimer: This blog does not take any responsibility of your profit/loss
Everything in this series will be governed by RBI policy meeting on Tuesday. Market could take a decisive direction after that meeting. Though RBI can not make reduction in interest rate, and since no change in rate is already factored in present market price, there might not be big turbulence after Tuesday. However, if RBI makes some positive statements as guidance such as RBI will do rate cut by end of the year or after Rupee stabilization etc., market will certainly cheer that.
NIFTY is in the range of 5500-6300 for several months now. It has to break one way or other. It is more possible it will give breakout at upper side, because in spite of all negative macros our NIFTY is holding near 6000 which is not far away from all time high. FIIs are selling but profit booking is very slow and cautious by them. It means they are expecting big jump very soon.
In near term also market might go up. A lot money is being invested in market and it is evident from the volume in trading in recent past. There will be preparation for election soon and lot of money will flow in to the system, it will directly or indirectly flow in to the market.
For safe trading strategies first week must be used for CALL sells.
One has to look for stocks with low implied volatility. One can wait till RBI policy and then take CALL sell positions or alternatively take half the positions now and average half positions after the policy meeting on Tuesday if market goes up. If market (and of course stocks chosen) goes down, anyway you will be in profit.
TCS:
TCS has given good run up in last series. It has very strong resistance in 1800-1900 region.
Sell TCS 1900 CALL between 7-8. Margin money about 50000/ lot and chances of earning 1750-2000 in next 30 days is more than 90%
More than double the bank interest rate.
Reliance:
Reliance could not convincingly break 920-930 resistance even on rally last month.
Sell Reliance 960 CALL between 7-8. Margin money could be between 25000-30000/-. You will able to earn 1750/2000 in next 30 days.
This earnings should be more than three times bank interest.
Tatamotors
Tatamotors is also in the range for some time now and it is not crossing 330. It is fair to assume with low implied volatility it might not cross 330 in this series also.
Sell TATAMOTORS 330 CALL between 2-2.50
Margin money 35000/- and earning will be 2000 to 2500 by end of 30 days.
Assuming one enters in trade of one lot of TCS, two lots of Reliance and one lot of Tatamotors, total investment will be between 140,000 to 150,000 in terms of margin money and earnings by August 29 will be between 7000 to 8000/-. This is very descent return on investment.
NIFTY:
Keep averaging NIFTY 6400 September CALLS
Sell 6500 NIFTY October CALLs in the range of 35-40.
JPASSOCIATE:
This stock is in downtrend for long time.
Buy JPASSOCIAT 40 PUT between 3 to 3.10. There is lot of open interest in 40 PUT.
Investment 12000. Exit anytime after option price reached above 4.00. It has trend line support near 37.
PNB:
Ahead of RBI policy review buy PNB 480 PUT between 5-6. This is out of money PUT buy and generally as a rule one should not buy OTM PUTs. However, in this specific case total investment will be about 2500-3000 and if there is slight negative news on Tuesday, PNB will plunge and give good profit on Tuesday. Otherwise exit the trade by weekend.
BankNifty:
Book part profit at current levels between 350-400.
Disclaimer: This blog does not take any responsibility of your profit/loss
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