New derivative strategies for next few days.

FIIs are still not buying heavily. But rally continued.
It is very stock specific, but still trend is up. Greece worries, poor prediction of Monsoon in July might not augur well with the investors.

One can take below trades:
Sell YESBANK 840 CALL between 45-55 one lot.
Buy NIFTY 8200 PUT 100 quantity between 50-60
Buy Tech Mahindra 500 CALL between 10-14


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

Strategy up to expiration of June 2015

I am writing blog after long time and I will be very short here.
FIIs are still not buyers in this trending market barring one day in the week and hence it does not give confidence of continuation of upward momentum.
But general trend is up. Good  beginning of monsoon could strengthen the trend further.

Sell YESBANK 820 PUT around 12 for July expiration around 12-13
Sell INFY 1000 CALL around 45 and sell 1000 PUT around 34-36 both July expiration.
Buy DLF 125 CALL of July expiration around 3.50-4.00.
Buy DLF 120 CALL of June expiration around 0.70-0.80

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

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.

YESBANK

I can not predict what will happen to TCS in view of this set of numbers. But overall things look good.
I will hold TCS strategy for few more days.
Lot of addition 2500 PUT, which is trading around 45, so stock should not go below 2455 in near term.

YESBANK

YESBANK had given kind of hammer pattern, though not perfect hammer, it could be positive indication for the stock.

Buy YESBANK 880 CALL between 18 and 18.50. Buy only if it reaches in this range.
Target 24, SL 15

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

AUROPHARMA

AUROPHARMA

Stock is trading at all time high and might see some profit booking in next couple of weeks.

Bear spread strategy:
Buy 1300 PUT around 20-22 and sell 1250 PUT around 10-11.
Maximum loss could be around 2500-3000 and profit potential about 10000/-

Risk reward ratio is very good.

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

BOI and TCS: Next week trades

It is advisable to stay positive in banking and IT.
Though my stomach feeling is BANKNIFTY might not go very far, charts are suggesting otherwise. As a short term trader one should follow the charts rather than inner voice!

Bank of India
Stock had bottomed out.
Now it could give fresh run at least till 235-245.

Bull spread strategy in BOI
Buy 220 CALL around 7 and Sell 235 CALL around 2.5.
Maximum loss could be around 4500 but maximum profit could be around 10500/- Risk reward ratio is very good here to enter in to the trade.

TCS
TCS quarterly results will be announced on April 16.

          Strategy for the result:
Consensus on street is TCS might not do well in this quarterly results and there could be some dip in stock post results. But overall stock is near buy zone, from option table 2500 seems to be very strong support, Rupee is weakening against dollar and hence considering all these aspects even slightly better than expected results will take the stock price towards 2900.

Sell TCS 2650 PUT around 70-75
Buy TCS 2500 PUT around 25-30
Buy TCS 2700 CALL around 57-60

Though maximum loss could be about 10000/-, this strategy would have unlimited profit potential.

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