Grass Roots: Hunger strike against Walker budget slowly gaining notice
Matthew Schauenburg looks small sitting on the floor in the grand space of the Capitol Rotunda, propped up against a marble pillar, a sign at his side counting the days he has been on a hunger strike to protest Gov. Scott Walker’s budget.

Read more on The Capital Times

India Inc., NRIs react to Pranab’s budget
Top industrialists, businessmen and NRIs Monday reacted to the federal budget presented by Finance Minister Pranab Mukherjee. Here are some of the comments:

Read more on Calcutta News

Summer festival could grow: Budget for 2011 event may double — HAVE YOUR SAY
The budget for the city’s annual summer festival could double to approximately $80,000 this year, setting the stage for a larger event.[...]

Read more on The North Bay Nugget

Equestrian Games cuts budget, sponsor fills gaps
LEXINGTON, Ky. (AP) – The budget for the Alltech FEI World Equestrian Games has been cut by $500,000 after lower than expected ticket sales, but the title sponsor is stepping in to fill financial gaps.

Read more on FOX 19 Cincinnati

Indian stock markets created history on May 18, 2009, when trading was halted for the day, after the markets hit upper circuits twice within hours of opening. This happened for the first time since the inception of the stock exchanges. The euphoria was due the results of the General elections that saw the emergence of Indian National Congress as the single most party thereby giving UPA a clear mandate. It must have been heartening for the equity investors to see their wealth appreciate rapidly in such a short span of time, especially after a painful and treacherous 2008. The optimism clearly underlined the fact that investors want stability at the centre and clarity on policy front.
Markets always react in a big way to big events like the outcome of General elections, Budget, Monetary policy, War etc. Therefore, as investors/traders, we all have some curiosity/expectations from policies/guidelines issued by the people at the helm of affairs that decide the course of the industries and economy as a whole.
Even though Indian economy has been quite resilient compared to the overall gloom in the global economy in the last one year or so, a lot needs to be done to keep the economy on growth path. A lot of industries suffered heavily due to the financial crisis in the western economies. There will, therefore, be expectations that government will offer soaps to various sectors and provide stimulus to keep the growth engines firing. Mr. Mukherjee’s budget is likely to be against the back drop of UPA governments’ mantra of ‘inclusive growth’. Even though the focus will be more on a number of programmes aimed at the poor section of the society, there will definitely be something for the interested parties.
Here are a couple of sectors and companies that are likely to be impacted by the Union Budget 2009-10.

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

 Website <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=”http://www.narendranainani.blogspot.com”>narendranainani.blogspot.com</a>.

Budget for FY-2010-11 to be presented today ISLAMABAD : The National budget for the Fiscal Year 2010-11, envisaging relief measures for the common man and new strategies for accelerating pace of economic development will be presented in the National Assembly on Saturday. This will be the first-e …. Read more on Business Recorder