Bullet Advisory Indian Stocks Weekly- Markets Will Take Cue From Interim Union Budget Proposals

BSE Sensex (9634.74) and Nifty (2948.35) closed 3.6% and 3.7% up respectively last week. Nifty put call ratio was 1.33. Support for Sensex is at 9400 and for Nifty 2870.Resistance for Sensex is at 9958 and Nifty is at 3050. Inflation was at 4.39 v/S 5.07 last week. Crude oil was at 35$.Markets recovered from low levels on the expectation of some tax relief in the Interim union budget which is to be presented on 16th February,2009. Rumors of cut in Securities Transaction Tax being considered by the Government also helped the market to remain strong. Disappointment if any in the Interim budget can change the mood of market players and market can change the direction suddenly for the worse. Nifty February 3100 call option added open interest. DLF and TATASTEEL  added open interest. Reliance Industries and Reliance Communications shaded open interest. Huge position was build up at TTML February call option strike price 25 and TataSteel February put option strike price 185

Tactics for Future Option players.

1)TataSteel(194.15) Lot Size-382 Shares

   Buy one call option of February  strike price 195@8.00 Rs.

   Sell one call option of February strike price 200@6.45   Rs.

   Premium .Paid=8.00*382=3056.00 Rs.

   Premium Received=6.45*382=2463.90 Rs.

   Net Premium Paid=3056.00-2463.90=592.10 Rs.

   Maximum Profit=200-195=5*382=1910-592.10=1317.9 Rs.

   Maximum Loss=592.10 Rs.

   Break-even=196.55  Rs.

2)TTML(23.30) February future-Lot Size 5225 shares.

    Buy one lot February future @23.30

    Sell one call option of  February strike price 25@0.15 Rs.

    Premium Received=0.15*5225=783.75  Rs.

    Max Profit==25-23.30=1.70*5225=8882.50+783.75=9666.25 Rs.

    Max loss=Unlimited.

Trading Idea

1)GSPL(33.30)Buy this stock in decline and trade.         

2)AndhraBank(55.70)Buy this stock in decline and trade.               

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

BHEL.NS              Bulllish        1          Rising   Rising  

ICICIBANK.NS   Bulllish        1          Rising   Rising  

INFOSYSTC.NS  Bearish       3          Rising   Rising  

ITC.NS                  Bearish       4          Rising   Rising  

MARUTI.NS         Bulllish        1          Rising   Rising  

SBIN.NS               Bulllish        6          Rising   Rising  

TATASTEEL.NS Bulllish         1          Rising   Rising  

TCS.NS                Bearish        3          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 

BHEL.NS              1467.4       49.77   59.9     14.53

ICICIBANK.NS   434.4         51.32   55.13   12.33

INFOSYSTC.NS  1251.65     45.6     49.3     17.25

ITC.NS                  179.3         60.19   55.19   21.69

MARUTI.NS         628.8         59.43   62.53   17.72

SBIN.NS               1193.8       50.79   56.47   20.69

TATASTEEL.NS 194.15         62.64   50.76   16.12

TCS.NS                 511.2         43.19   51.74   8.47

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