No new position on Friday

As expected NIFTY recovered from gap down opening.
Today also most of markets are in red and DOW is in marginal green. NIFTY might give positive opening but shall stay weak till it does not cross 5975 on EOD basis.

Till then it is advisable to hold short positions. Major trend is till down and it will be risky to take counter position.

Hold LT, DLF and TCS with lesser targets, 1375, 188, 1440 in cash respectively. Tomorrow after 2 pm we could see Friday effect. Hence, those like us are holding majority bear positions should somehow manage to held on to those till Tuesday. Market may take confirm downward movement after Tuesday but before that it could go up on hopes of good IIP data, inflation numbers, RIL AGM and last but not least our FM's statement to urge rate cuts!

One can book profit in BATAINDIA and GSK

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

DLF

Market may move down, unless RBI announces some descent measures to boost the sentiments. This possibility can not be ignored as last several occasions in recent past, whenever there was slight downward movement in market, either RBI governor or finance minister made some statements and those helped market. So I strongly believe there is not much downside one can expect from here.
Tomorrow maybe gap down opening as today but during the day, it should recover. Today all major markets in world are down but NIFTY managed to end into green. This is positive sign for bulls.

As regards to old recommendations, it is still worth holding LT and TCS till this weekend at least, before we decide whether to book a loss.

Reduce target of TCS to 48 and LT to 55.

Real estate stocks did well today, DLF performed much better than the index.
However, generally stock is in down trend and below is bear spread strategy for DLF. It could lose ground very soon and rest in the region of 185.
Buy 190 DLF PUT at around 6 and Sell 180 DLF PUT at around 3/-
Maximum loss could be 3000/- whereas profit potential 6000/- if DLF closes below 180 at the time of expiry of this month. It is advisable not to hold positions till expiry and book the profit when you gain more than 2% in the trade.

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

BATAINDIA

TCS Update
TCS did not participate in downward trend today. Adjust target to 55.

LT:
Hold for SL of 1445. If it touches 1445 exit all positions. Book profit at 57 in Buy PUT and one can hold 1360 CALL Sell option contract for SL 125 or book profit in the range of 50/55.

BATAINDIA
Buy 860 call in the range of 42-46 and sell 900 call in the range of 25-30. Hold till expiry or till stock crosses 900!
Maximum loss could be around 4250 and has profit potential of about 6000/-

One can buy BATAINDIA in cash segment for two weeks for 5 to 7% gain.


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

TCS

Some of the earlier  recommendations did really well and one should have booked profit.
LT PUT book profit in the range of 67-70.

TCS:
Buy TCS 1460 PUT between 38-40 target 62/63 within next two days.

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

Strategies in LT, ICICI, TATAMOTORS and stocks for cash segment

Market turned down on Friday and such a stiff down side moment was not expected.
One can assign any reason, something is at decade low and something is at year high but it seems on Friday it was simple profit booking day.
FIIs took out 1600 cr in a single day. This was unusual, though in recent days there were some incidences of withdrawal by them it was never in huge quantity.

NIFTY has suddenly reached in the region of 5980. Remember NIFTY turned back three times from 5970- 5930 level to 6100. It could do it again too. Let us not conclude anything on one day drop.

Strategies for June.

L & T
Buy L & T 1400 PUT of June expiry between 45-47.
Total investment will be about 11500/-
To have credit balance in your trading account sell 1360 CALL of LT, June expiry between 85-95. Kindly  do this in limit order as there is not much liquidity in this option contract.
If one could sell 1360 call at about Rs. 90 then there will be credit balance of about Rs. 45/ share ie Rs. 11250/- per lot!

If LT goes down to 1350 level in cash, exit from both trades to gain profit. SL 1450 in cash. It means if LT touches 1450 in cash exit in all trades, there will be about 4000-5000 loss, if it takes 2 weeks to reach 1450.

ICICIBANK

Bear Spread strategy:
Buy 1140 PUT of June expiry at 30
Sell 1080 PUT of June expiry at 11
Maximum loss 4750 Maximum profit if ICICI closes below 1080 will be 10250/-
One need not wait till expiry but can book profit when there is 10% gain.

Tatamotors

Bull Spread strategy:
Buy Tatamotors 310 Call of June expiry @ 16/-
Sell Tatamotors 330 Call of June expiry @ 7/-

Maximum loss could be Rs. 9000 and maximum profit potential Rs. 11,000/-
To have credit in your account Sell Tatamotors 300 CALL of June expiry @ Rs. 6/-
Exit this strategy if Tatamotors goes below 291 in cash.

For cash segment:
Buy GSK at around 2500 for 15 days, and book profit if there is 10% gain.
Buy Britannia at 725 and hold for 15 days,  book profit if there is 10% gain.

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

JUBLFOOD

FII sold in huge quantity on Friday, if this trend continues till expiry ie May 30, 2013, there could be small correction in market.

Buy JUBLFOOD 1050 PUT between 7 to 7.50 and hold till expiry. Maximum loss cold be Rs. 1750 to 1875/-. If market really corrects, these kind of stocks, investors would like to exit first. There was sharp up move earlier and it will take downward moment with much greater speed than the prior up move. One can easily get target of 45/50 within a short span ie till May 30, 2013.

You will appreciate, nobody can predict the market only could anticipate direction and could calculate risk-reward ratio. Risk reward ratio is very good here.

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

Axisbank

Buy Axisbank 1450 PUT between 25.10-25.50
Maximum investment Rs. 6400.
Adjust profit with trailing stoploss.


Bearspread strategy: Very good risk and reward ratio.
Buy Axisbank 1450 PUT between 25.10-25.50 and sell 1440 PUT at 22-23
Maximum loss Rs. 500-700 and Maximum profit Rs. 3000-4000 if Axis Bank closes below 1440 on May 30, 2013.



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