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Bullet Advisory Indian Stocks Weekly-Expected Interest Rate Cut and Future Series Expiry Will Make Indian Market Volatile

 

 

BSE Sensex(10099.91) and Nifty(3077.50) closed 4.2% and 5.3% up last week.Inflation was also under control at 6.84 v/s 8.00 last week.Crude oil was at 33$.CBOE Vix Volatility Index was down to 45.Market recovered from low levels on interest rate cut by Federal Reserve targetting 0.25% to 0%.Better than expected inflation nos. also boosted the sentiment.Despite bad news like Satyam-Maytas deal worth $1.6 billion being called off due to pressure from all quarters as it was viewed as only beneficial to the promoters of group company,Possibility of inquiry against Reliance ADAG group companies like RNRL and REL for violation of FEMA law by Enforcement Director the market was able to absorb it and move higher.Expectation of furthure interest rate cut by Reserve Bank Of India and due expiry of Future Option series on 24^th December will make market volatile. Support for Sensex is 9750 and for Nifty 2960Resistance for Sensex is 10525 and Nifty is at 3220. Small Buying of FII was visible..Nifty put-call ratio was 1.03.Nifty 3000 put option added open interest.RNRL and SUZLON added open interest.Reliance Industries and India Cement lost open interest.

 

 

Strategy for Future Option players.

 

 

1)NTPC(182.20) Lot Size-1625 Shares

Buy one call option of January month strike price 180@11.15 Rs.

Sell one call option of January month strike price 190@7.10 Rs. a

Premium Paid=11.15*1625=18118.75 Rs.

Premium Received=7.10*1625=11537.50 Rs.

Net Premium Paid=18118.75-11537.50=6581.25 Rs.

Maximum Profit=190-180=10*1625=16250.00-6581.25=9668.75 Rs.

Maximum Loss=6581.25 Rs.

Break-even=184.05 Rs.

 

 

2)IDBI(70.00) January month future-Lot Size 1200 shares.

Buy one lot January month @70.00

Sell one call option of January month strike price 70@6.50 Rs.

Premium Received=6.50*1200=7800.00 Rs.

Max Profit==6.50*1200=7800..00 Rs.

Max loss=Unlimited.

 

 

 

 

Trading Idea

1)TCS(513.55)Buy this stock in decline and trade.

2)Allahabad Bank(50.05)Buy this stock in decline and trade.

 

 

 

 

 

 

Trend of Major Stocks

 

 

 

 

 

 

STOCK TREND NO.OF Days Weekly Monthly

 

 

Trend Trend

ICICIBANK.NS Bulllish 3 Rising Rising

INFOSYSTC.NS Bulllish 4 Rising Falling

ITC.NS Bulllish 2 Rising Rising

MARUTI.NS Bulllish 5 Rising Falling

SATYAMCOM.NS Bearish 3 Falling Falling SBIN.NS Bulllish 2 Rising Rising

TATASTEEL.NS Neutral 1 Rising Rising

TCS.NS Bulllish 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 472.8 66.9 66.99 20.8

INFOSYSTC.NS 1191.3 63.64 49.85 20.37

ITC.NS 179.05 57.66 59.11 12.37

MARUTI.NS 549.4 69.02 55.22 27.84

SATYAMCOM.NS 162.7 16.3 28.18 37.28

SBIN.NS 1287.45 55.37 58.16 17.19

TATASTEEL.NS 229.1 65.76 59.25 25.72

TCS.NS 513.55 60.36 49.07 14.44

 

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