Update and Sell RELINFRA; Hedge shorts with NIFTY CALLs

This seems to be short term bull run now. But resistance is approaching.

Book profit in DLF strategy. Exit from both 160 CALL and 110 PUT.
Hold TATAMOTORS strategy, of 280 future sell of September and 280 August CALL buy. This strategy is making about 5000/- loss presently, but still worth holding.

Exit TCS at cost.

SBI 1550 PUT: Exit around 48-50.

Hold RELINFRA 370 CALL sell till it crosses 17 or 375 in cash. Everyday stock is going up by 10/20 Rupees and one might even see this level tomorrow. Risk taker can hold as stock has given very good run up , this could be only technical bounce and may not be a value buying. Normally in this situation, investors will not hold such a stock, this must be mere trading and traders will start booking profit soon.

Sell RELINFRA 410 CALL between 2-2.25.

It is important to note FII turned buyers since yesterday, perhaps another bull run is on the card, better to exit all bear positions for sometime and sit on cash till next week. There is no fundamental reason for market to go up, but at least four times market has gone up from 5500- 5550 level. It did it again. If it crosses 5750/5760 tomorrow then we can see another 200/300 points upside in NIFTY in August.

Those who would like to hedge short positions can buy NIFTY 5800 CALL between 54 and 55.5. If NIFTY crosses 5725 then only 5800 CALL will be above 54 and that could be the right entry. But please understand this is only for hedging as market is already in strong resistance arena and might start correcting unless there is some other trigger for up-move.


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

Update

Book profit in SBI
Book profit in Heromotocorp strategy. Hold TATAMOTORS strategy recommended yesterday.
Book profits in CALL sell options of Reliance, TATAMOTORS.
Exit TCS 1900 CALL sell at cost.

Hold RELIANCE INFRA

Hold BHEL, if not booked profit earlier. All metal stocks did well today. BHEL may go down again till 105 levels in cash and option price would be near to cost. Exit at cost.

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

Strategies for the week

NIFTY is showing some sign of reversal. But it will be difficult for NIFTY to sustain at higher levels. It has formed double top on weekly and daily chart which indicates NIFTY target of 5200 in near future unless reversal continues and NIFTY goes above 5690/5700 on EOD basis. NIFTY should be considered in down trend till then.

DLF:
DLF quarterly results are on Monday. Company time to time declares loan restructuring ideas and  exiting from non-core businesses and stock moves up on such news.
Now also there is possibility that company may announce something in quarterly results about loan rearrangement and stock will move up to 160 in spite of bad results like Ranbaxy did on Friday.

If this does not happen stock could be double digit stock very soon.

Strategy in view of this.
Buy 110 PUT in the range of 2-2.50 and Buy 160 CALL in the range of 2-2.50.
Book profit at 6/6.50 immediately after outcome of result or exit at loss.

Alternatively risk takes can buy only 110 PUT and hold till descent profit; maximum loss could be 2000/2500.

SBI:

SBI quarterly results are also expected on Monday. Buy SBI 1550 PUT between 40-45 and book profit around 60/62. If it convincingly crosses 62 wait till 80/90 for profit booking.

Both these DLF and SBI options are costly due to IV (implied volatility) went up ahead of results.
Since SBI is in down trend more risk takers can sell SBI 1600 CALL between 115-130 and pocket the premium. In high IV, "call sell" will be more beneficial if view turns (down trend) right. Generally, IV will go down very quickly after results and profit will be more. Also loss will start only if SBI closes above 1720/1730 at expiry.


Portfolio for next two weeks.

Tatamotors:
Sales in domestic market is going down. Slowdown in China would hamper export. Stock has strong support in the range of 253-257 and resistance at 330. If it breaks support it could go much further down.

Sell TATAMOTOR September future at market price around 280/285 and buy 280 TATAMOTOR August CALL between 8-11. Execute both tends simultaneously.
Depending upon the prices you would able to get, maximum loss could be around 10000/- but this trade has unlimited profit potential.
Break-even would be at around 270.

HEROMOTOCORP
Stock is in up trend even in falling market. It will touch 1940 very soon.
Buy August future at current levels around 1850-1860 and Buy 1850 August PUT between 50-57. Execute both the trades simultaneously.
Depending upon the prices you would able to get, maximum loss could be around 6500/- but this trade has unlimited profit potential.
Break-even would be at around 1900/1905.

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

Tatamotors

TATAMOTORS
Buy 280 PUT  between 12 to 12.50. Target 15.30-15.50. SL 8.30/9.00
Exit the trade today even if it is at loss because value of option would go down on Monday due to holiday tomorrow.

If you think you have generated adequate profit this month/week then don't enter in this trade. Or exit as soon as SL hits.

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

Only update, no new trades for rest of the week.

Keep booking profit in all bear positions. This is curtailed week and most of the followers of the blog must be already in green. It is important to ride on trend and fortunately it happened in this series right in the beginning of the series.
To secure gained profit must be the prime objective now, even if trend reverses during rest of the month.

DLF:
Results are on next Monday, risk takers can decide to hold 100 PUT till quarterly result are known on next Monday. Those who don't want to wait must book profit. Before decision making look at your balance sheet of this month.

Tatamotors:
Lot of volatility ahead of results. Implied volatility has gone up like anything and hence 330 PUT is being traded at same level of our buying price even if stock price went down. After results maybe pricing will be again in the normal range and it would be time to book profit.
Market is not expecting very good results, however, in spite of this if numbers are good, the stock will rally up to 320 levels.

TCS:
Hold till it crosses 1910 on EOD basis before you decide to book a loss.

Both TATAMOTORS and TCS are being considered as safe heavens in falling market by investors. Lot money presently being diverted in these two stocks.


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

Buy PUTs

Buy PUTs. This seems to be Sell on Rise market.
Buy 5600 Put in the range of 70-80. Start booking profit from 90 onward.
Buy BHEL 100 Put between 3.00-3.35.
FII sold today. PCR is just near 1, it could go to 0.8 and it means 70/80 points dip in NIFTY likely.
But very soon NIFTY will be in oversold region and could show bounce upto 5850.

Hold all CALL sell position. TCS is not in mood to show any correction, going up by 1 to 1.5% daily. If TCS crosses 1900 with this speed then there is reason for concern and it is advisable to book loss.

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

Some very low risk option trades to secure profit in this month.

Everybody is having very negative sentiment about market. Lot of investors/MF managers lost money as only few handful of stocks are doing well. Nowadays NIFTY is not real representation of broader market.

This month is really good so far for iOptionTrade blog followers.
Most of the calls are already in the money and keep booking profits as appropriate. Do not take any major risk which would lead to substantial loss. If one would have entered in reasonable number of trades recommended on this site, his/her account must be in green.

Hold all CALL sell recommendations given earlier. TCS is going up, but it has resistance in 1850-1900 zone and will find it difficult to cross 1900. If it crosses 1900 in this trading week, it is better to book loss in TCS. Many investors are diverting funds to TCS assuming it will be safe investment opportunity, even if it is trading at very high levels. We see at least 0.5% upside in stock everyday.

Some of the low risk strategies are as below:


ITC
Sell ITC 380 CALL between 1.25-1.50

BankNifty (BN)
Buy OTM PUTs in BankNifty. Generally OTM PUTs should not be bought, but it makes sense here.
For example 9300 PUT in the range of 100-125.
Book profit if it goes to 180-225.
It is highly unlikely that BN will go below 9200 before this expiry, so book profit as soon as there is more than 2% gain over investment.

Infrastructure stocks are collapsing.
DLF:
DLF is trading at very low levels. Book profit in all earlier strategies of DLF and simply buy 100 PUT between 2.00-2.50/-. DLF could go to sub-hundred levels before this expiry and one can ride on this fall. This is again OTM PUT. But IV is above 88 and this trade could lead to good profit.

I would suggest chose only one option trade between DLF and BN.

RELINFRA:
Sell RELINFRA 370 CALL between 3.50-4.00
Less risk takers can sell RELINFRA 400 CALL between 1.50-2.00

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