Bullet Advisory Indian Stocks Weekly— Markets to Remain Stock Specific Following Q3 Results

BSE Sensex ( 9323.59) and Nifty (2828.45) closed 0.9% and 1.6% down  respectively last week.Nifty put-call ratio was 0.93.Support for Sensex is at 9040 and for Nifty 2730.Resistance for Sensex is at 9690 and Nifty is at 2960. Inflation was at 5.24 v/s 5.91 last week.Crude oil was at 36$.Wipro lost ground on the reports of blacklisted by world bank for applying in new tenders till 2011.Infosys and Sasken were down on the news of Nortel filing the bankruptcy under chapter 11. Unitech saw the set back as Fitch downgraded it’s rating on doubts of repayment capabilities.KPMG and Deloitte were given assignment of restating the accounts of Satyam by newly appointed board.Lazard and Swiss Finance Co. offloaded the shares of Satyam at market price in huge quantity. Nifty 2600 put option  added open interest.Satyam  and ICICI Bank  added open interest. TataSteel and Infosys shaded open interest. Huge position was build up at RPL January call option strike price 80 and Reliance Industries January call option strike price 1200

Tactics for Future Option players.

  1)Nagarjuna Fertilizers(16.15) Lot Size-3500 Shares

   Buy one call option of January  strike price 15@1.75 Rs.

   Sell one call option of January strike price 20@0.30   Rs.

   Premium .Paid=1.75*3500=6125.00 Rs.

   Premium Received=0.30*3500=1050.00 Rs.

   Net Premium Paid=6125.00-1050.00=5075.00 Rs.

   Maximum Profit=20-15=5*3500=17500-5075=12425.00 Rs.

   Maximum Loss=5075.00 Rs.

   Break-even=16.45  Rs.

2)IDFC(60) January  future-Lot Size 1475 shares.

    Buy one lot  January future @60.00

    Sell  one call option of  January strike price 60@3.75 Rs.

    Premium Received=3.75*1475=5531.25  Rs.

    Max Profit==5531.25 Rs.

    Max loss=Unlimited.

Trading Idea

1)MatrixLab(74.70)Buy this stock in decline and trade.  

2)GSFC(79.85)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

ICICIBANK.NS         Bearish   7        Falling  Rising

INFOSYSTC.NS        Neutral    1       Rising   Falling

ITC.NS                        Bulllish  4          Rising   Rising

MARUTI.NS               Neutral    2       Rising   Rising

SATYAMCOM.NS    Bulllish   1         Falling  Falling

SBIN.NS                     Bearish    1       Falling  Rising

TATASTEEL.NS         Bearish    2       Rising   Rising

TCS.NS                       Bearish    2       Rising   Rising

Technical indicators of major Stocks

MFI=Money Flow Index

RSI=Relative Strength Index

ADX=Directional Momentum Index

STOCK CLOSE  MFI-21  RSI-14  ADX-14 

ICICIBANK.NS      423.75    54.68   47.52   18.89

INFOSYSTC.NS     1267.4    76.21   58.65   17.78

ITC.NS                     171.75    47.53   50.82   13.73

MARUTI.NS            589.65    76.05   61.09   17.66

SATYAMCOM.NS 24.5        32.96   23.87   51.54

SBIN.NS                   1164.15 49.88   42.25   19.32

TATASTEEL.NS     204.05     39.95   45.55   16.93

TCS.NS                     503        50.6     48.24   9.99                                                                                                                             

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