Dec

31

Bullet Advisory Indian Stocks Weekly–Lack Of Conviction and Commitment Will Make Market Hollow

Posted In: Stock Market

BSE Sensex(9328.92) and Nifty(2857.25) closed 7.6% and 7.2% down respectively last week.Inflation was also under control at 6.61 v/s 6.84 last week.Crude oil was at 37$..Market lost ground on reports of rising tension between India and Pakistan.All three defense chiefs briefed prime minister Mr.Manmohan Singh regarding security situation in Delhi.Quarter 3 Advance Tax collection nos. announced were far below expectations down nearly 22.4% affected the the sentiments of market players and disappointment was clearly visible in buying commitment of investors.Traders and investors refrained from taking new position in the market and it was clearly reflected in the trading volume. Satyam was down after the world bank’s allegation of bribery on the firm.Maytas also was on receiving end on concerns over the valuation of properties it is holding.Wipro’s acquisition of Citibank’s unit was also not enough to hold the price of the stock.Reliance petroleum completed the commissioning of it’s refinery this week and market was speculating on Chevron’s hiking it’s stake from present 5% to 29%.Second stimulus package expected to be announced by Government Of India is the only hope on which bulls are relying at this point of time.Support for Sensex is at 8720 and for Nifty 2670.Resistance for Sensex is at 9900 and Nifty is at 3030. Small selling from FII was visible..Nifty put-call ratio was 1.13.Nifty 3000 call option added open interest.Reliance Petroleum and Jet Airways added open interest.Reliance Industries and DLF lost open interest.

Strategy for Future Option players.

1)Hindalco(48.55) Lot Size-1759 Shares
Buy one call option of January month strike price 50@3.75 Rs.
Sell one call option of January month strike price 55@2.00Rs.
Premium Paid=3.75*1759=6596.25 Rs.
Premium Received=2.0*1759=3518.00 Rs.
Net Premium Paid=6596.25-3518.00=3078.25 Rs.
Maximum Profit=55-50=5*1759=8795-3078.25=5716.75 Rs.
Maximum Loss=3078.25 Rs.
Break-even=51.75 Rs.

2)DaburIndia(83.70) January month future-Lot Size 2700 shares.
Buy one lot January month @83.70
Sell one call option of January month strike price 90@1.00 Rs.
Premium Received=1.00*2700=2700.00 Rs.
Max Profit==90-83.70=6.30*2700=17010.00+2700=19710.00Rs.
Max loss=Unlimited.

Trading Idea
1)GlaxoSmith Pharma(1127.80)Buy this stock in decline and trade.
2)SunPharma(1056.80)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND NO.OF Days Weekly Monthly

Trend Trend
ICICIBANK.NS Bearish 4 Rising Rising
INFOSYSTC.NS Bearish 2 Rising Falling
ITC.NS Bearish 3 Falling Rising
MARUTI.NS Bearish 4 Rising Falling
SATYAMCOM.NS Neutral 1 Falling Falling
SBIN.NS Bearish 1 Rising Rising
TATASTEEL.NS Bearish 4 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 417.35 67.78 51.67 20.32
INFOSYSTC.NS 1109.25 65.73 39.55 17.03
ITC.NS 170.65 43.76 47.5 11.25
MARUTI.NS 510.2 63.72 45.75 27.49
SATYAMCOM.NS 135.65 15.51 22.93 44.61
SBIN.NS 1243.1 56.36 52.83 16.6
TATASTEEL.NS 212 58.56 50.7 22.17
TCS.NS 471.65 53.6 40.93 13.34

Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views.
Website
narendranainani.blogspot.com.

Article Source: Bullet Advisory Indian Stocks Weekly–Lack Of Conviction and Commitment Will Make Market Hollow

Dec

31

Bullet Advisory Indian Stocks Weekly–Lack Of Conviction and Commitment Will Make Market Hollow

Posted In: Stock Market

BSE Sensex(9328.92) and Nifty(2857.25) closed 7.6% and 7.2% down respectively last week.Inflation was also under control at 6.61 v/s 6.84 last week.Crude oil was at 37$..Market lost ground on reports of rising tension between India and Pakistan.All three defense chiefs briefed prime minister Mr.Manmohan Singh regarding security situation in Delhi.Quarter 3 Advance Tax collection nos. announced were far below expectations down nearly 22.4% affected the the sentiments of market players and disappointment was clearly visible in buying commitment of investors.Traders and investors refrained from taking new position in the market and it was clearly reflected in the trading volume. Satyam was down after the world bank’s allegation of bribery on the firm.Maytas also was on receiving end on concerns over the valuation of properties it is holding.Wipro’s acquisition of Citibank’s unit was also not enough to hold the price of the stock.Reliance petroleum completed the commissioning of it’s refinery this week and market was speculating on Chevron’s hiking it’s stake from present 5% to 29%.Second stimulus package expected to be announced by Government Of India is the only hope on which bulls are relying at this point of time.Support for Sensex is at 8720 and for Nifty 2670.Resistance for Sensex is at 9900 and Nifty is at 3030. Small selling from FII was visible..Nifty put-call ratio was 1.13.Nifty 3000 call option added open interest.Reliance Petroleum and Jet Airways added open interest.Reliance Industries and DLF lost open interest.

Strategy for Future Option players.

1)Hindalco(48.55) Lot Size-1759 Shares
Buy one call option of January month strike price 50@3.75 Rs.
Sell one call option of January month strike price 55@2.00Rs.
Premium Paid=3.75*1759=6596.25 Rs.
Premium Received=2.0*1759=3518.00 Rs.
Net Premium Paid=6596.25-3518.00=3078.25 Rs.
Maximum Profit=55-50=5*1759=8795-3078.25=5716.75 Rs.
Maximum Loss=3078.25 Rs.
Break-even=51.75 Rs.

2)DaburIndia(83.70) January month future-Lot Size 2700 shares.
Buy one lot January month @83.70
Sell one call option of January month strike price 90@1.00 Rs.
Premium Received=1.00*2700=2700.00 Rs.
Max Profit==90-83.70=6.30*2700=17010.00+2700=19710.00Rs.
Max loss=Unlimited.

Trading Idea
1)GlaxoSmith Pharma(1127.80)Buy this stock in decline and trade.
2)SunPharma(1056.80)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND NO.OF Days Weekly Monthly

Trend Trend
ICICIBANK.NS Bearish 4 Rising Rising
INFOSYSTC.NS Bearish 2 Rising Falling
ITC.NS Bearish 3 Falling Rising
MARUTI.NS Bearish 4 Rising Falling
SATYAMCOM.NS Neutral 1 Falling Falling
SBIN.NS Bearish 1 Rising Rising
TATASTEEL.NS Bearish 4 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 417.35 67.78 51.67 20.32
INFOSYSTC.NS 1109.25 65.73 39.55 17.03
ITC.NS 170.65 43.76 47.5 11.25
MARUTI.NS 510.2 63.72 45.75 27.49
SATYAMCOM.NS 135.65 15.51 22.93 44.61
SBIN.NS 1243.1 56.36 52.83 16.6
TATASTEEL.NS 212 58.56 50.7 22.17
TCS.NS 471.65 53.6 40.93 13.34

Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views.
Website
narendranainani.blogspot.com.

Article Source: Bullet Advisory Indian Stocks Weekly–Lack Of Conviction and Commitment Will Make Market Hollow