Trades for Friday, tomorrow

NIFTY has closed above 7940 and this would keep it floating at least for some time above 7940.
New trades should be taken on Monday.

But for intraday tomorrow following trades look good. One can exit at EOD and calculate total profit.

Sell Axis Bank 480 PUT between 8-9\
Sell DLF 100 PUT between 3-4
Sell HDFC 1160 PUT  between 30-34
Buy JP ASSOCIAT 12.50 CALL around 0.25
Buy RELINFRA 360 CALL between 11-12
Buy TATAMOTORS 320 PUT between 9-10

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

Trades for the expiry week

NIFTY is heading towards 7600.
Buy PUTs is the matra for success.

NIFTY

This is an OI table for the next month.
Buy 7800 PUTs around 30-35 of September expiration.
Buying 200 quantity one would invest only Rs. 7000/-

Buy next month's TATAMOTORS PUT of 320 strike price at around 9-10/-

IT stocks should not fall too much even if market falls.

Sell 1000 quantity (2 lots) of TECHM 560 strike price at around 9-10 of August expiration. Or sell one lot of TECHM 570 strike price at around 14-15 of August expiration.

In short trades for expiry week could be as follows

1. Buy 7800 PUTs around 30-35 of September expiration.
2. Buy 320 PUT of  TATAMOTORS PUT around 9-10/- of September expiration.
3. Sell 1000 quantity (2 lots) of TECHM 560 strike price at around 9-10 of August expiration. OR for more risk takers just sell one lot of TECHM 570 strike price at around 14-15 of August expiration.

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

Trades for next few days

NIFTY is range bound.

TCS has given good profit booking opportunity last week and one should have grabbed it.

For next few days banking stocks look promising based on rumors of rate cut, perceived lowering of inflation data and NAMO's speech about progressing India. A speech from Red Fort today and markets will cheer that for sure on Monday.

Look at the OI table for NIFTY for this month and next month.

This month's OI table

From this table it is clear that today smart traders are convinced that NIFTY will have support around 8200 and resistance around 8700 for August expiration.

For next month, traders are thinking it could go up to 9000 again. Lot of hopes on GST. Also historically September is good month for the market.

Lot of discussions about low monsoon and FED rate hike but investors at least today are not in mood to listen anything.
NIFTY had reversed from ichimoku cloud on day chart.

NIFTY is forming strong base in 8300-8400 levels and in last one month three times NIFTY bounced back from that zone.

In banking SBI is showing momentum.

SBI has very strong support around 250

With this one can enter in to following trades.

1. Sell 8700 strike NIFTY CALLs 100 quantity (4 lots) for September expiration around 115-125
2. Sell 8200 strike NIFTY PUTs 100 quantity (4 lots) for September expiration around 60-70
3. Buy SBI 280 CALL one lot of August expiration  around 3.5-4.00 
4. Sell SBI 290 CALL one lot of August expiration  around 1.5-2.00

JPASSOCIAT is available at very cheap price. One can buy sizable quantity in cash segment. This is flagship company of big 20000 Cr group, lot of assets, much better than dot com and start up companies, If management could turn around the business in next couple of years then it will give very good returns. Otherwise downside from here is very limited.


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

Strategy for next couple of weeks

NIFTY is going up.
It might continue it upward momentum for sometime. Nevertheless, since no major events are around unless there is something extraordinary happens, NIFTY is going to take pause for sometime. It will be range-bound.
A perfect stage for CALL sell strategy in NIFTY
At the same time IT stocks could prosper. Rupee is depreciating and this could benefit IT stocks. No brainer!
Also a stock like JPASSOCIATE, is bottomed out. One might see some buying there. Results will be announced on August 8. All analysts are expecting very poor results and it is reflecting in stock price.
Nevertheless, after a long time stock is trading above 200 D moving average. If it continues to stay above this key average, then it could reach to 14-15 before end of the month.

So strategy for the month or for at least next couple of weeks could be as follows.
Sell 8600 CALLs 100 quantity around Rs. 105-125
Buy 2500 TCS CALL around Rs. 70-80
BUY JPASSOCIATE 12.5 strike price CALL around Rs 0.50/-

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

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