Bullet Advice For Indian Stocks Weekly- market will remain range bound before union budget

BSE Sensex (14764.64) and Nifty (4375.50)  closed 1.7% and 1.4 % up respectively

last week.Nifty Future July was quoting at 8.5 points premium.Nifty Call Option July 4500 was very active.Support for Sensex is at 14250 and  Nifty  at 4210.Resistance for Sensex is at 15280 and Nifty is at 4540.Crude oil was at 69.00 $.

Union Budget will be presented on 6th July 2009 by Finance Minister Pranab Mukharjee.Deregulation of fuel pricing is expected with more power gave to PSU oil refineries to decide the price of petrol and diesel.This can increase the prices of petrol and diesel significantly.

RIL and  ICICI Bank added Open Interest in July Series.ACC and Cairn shaded Open Interest.Huge position was build up at RIL July Call Option Strike Price 2010.Good build up was also seen at IFCI July Call Option Strike Price 60.

Tactics for Future Option players.

1)Hindalco(86.70) Lot Size-3518 Shares

Premium .Paid=9.15*3518=32189.70 Rs.

Premium Received=.4.10*3518=14423.80 Rs.

Net Premium Paid=32189.70-14423.80=17765.90  Rs.

Maximum Profit=95-85=10*3518=35180-17765.90=17414.10 Rs.

Break Even Price=90.05

2)RPL(1126.85) July Future-Lot Size 1675 shares.

Buy One Lot July Future @126.85 Rs.

Sell One Call Option of  July Strike Price 140@5.0 Rs.

Premium Received=5*1675=8375.00 Rs

Maximum Profit=140-126.85=13.15*1675=22026.25 + 8375.00=30401.25 Rs.

Max Loss=Unlimited.

Trading Idea

1)HDIL(251.55)Buy this Stock in decline and trade 2)ICICI Bank(756.15)Buy this Stock in decline and trade

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

BHEL.NS                    Bulllish  1          Falling  Rising ICICIBANK.NS         Bulllish  1          Falling  Rising INFOSYSTC.NS        Bulllish  7          Rising   Rising ITC.NS                         Neutral            1          Falling  Falling MARUTI.NS               Bulllish  1          Falling  Rising SBIN.NS                      Neutral            1          Falling  Rising TATASTEEL.NS         Bearish 1          Falling  Rising TCS.NS                       Bulllish  3          Falling  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                  2203.75 42.68   58.05   33.83 ICICIBANK.NS         756.15 36.77   55.32   21.07 INFOSYSTC.NS        1827.1 69.1     52.84   67.11 ITC.NS                        196.7   56.16   52.03   25.18 MARUTI.NS            1059.25  52.81   55.88   23.71 SBIN.NS                  1749.25  47.01   56.16   33.24 TATASTEEL.NS         388.55 48.13   47.7     25.25 TCS.NS                       397.4   70.48   29.87   45.97

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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,Portfolio Management.Nifty Future,Nifty Options,Stock Future,Stock Options,Nifty Call Put Options Calls Tips,Stock Future Option Trading Recommendations Advice.Best Advisor India

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DOW (9441.27) and NASDAQ (2018.78) closed 1.1% and 0.50% down respectively last week.Support for DOW is at 9110 and NASDAQ 1925.Resistance for DOW is at 9720 and NASDAQ 2080..

Trend Of Major Indices and Stocks

Symbol Trend No. of Days WeeklyTrend Month

^DJI     Bearish 1          Falling  Rising

^IXIC  Bulllish  8          Falling  Rising

AA       Bulllish  2          Falling  Rising

AXP    Bulllish  3          Rising   Rising

BA       Bulllish  7          Flat!     Flat!

C         Bulllish  2          Rising   Rising

CAT    Bearish 3          Falling  Rising

DD       Bulllish  1          Falling  Rising

DIS      Bearish 1          Falling  Rising

EK       Bulllish  4          Rising   Rising

GE       Bearish 1          Falling  Rising

HD       Bulllish  4          Rising   Rising

HON   Bearish 1          Rising   Rising

IBM     Bearish 1          Flat!     Flat!

INTC   Bulllish  4          Rising   Rising

IP         Bulllish  8          Rising   Rising

JNJ      Bearish 3          Falling  Rising

JPM     Bearish 1          Falling  Rising

KO      Bearish 1          Falling  Rising

MCD   Bearish 1          Rising   Falling

MMM  Neutral 1          Falling  Rising

MO      Bearish 1          Rising   Rising

MRK   Bearish 1          Falling  Rising

MSFT  Neutral 1          Falling  Falling

PG       Neutral 1          Falling  Rising

T          Bearish 1          Rising   Rising

UTX    Bearish 1          Rising   Rising

WMT   Bearish 2          Rising   Rising

XOM   Bearish 1          Rising   Rising

Useful Technical Indicators for Major Indices and Stocks

Symbol Close PVBreakout MFI-21 RSI-14

^DJI     9544.2 Loser   59.4     66.92 ^IXIC  2028.77           Neutral 56.99   63.33 GE       14.08   Loser   65.48   58.35 IBM     118.22 Loser   50.54   55.22 MSFT  24.68   Loser   68.69   63.05 PG       53.19   Neutral 40.45   49.79

MFI=Money Flow Index

RSI=Relative Strength Index

PV=Price Volume

Trading Idea

(1)INTC(20.25)Buy at declines and trade.

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Bullet Advisory Indian Stocks-India’s Top Most No.1 Best Stock Market Advice Blog,Hot Stock Tips Calls by Expert Technical Analyst Narendra Nainani of India.Most Preferred and Successful Paid Subscription Stock Tips Calls Website of India.Excellent Success Ratio of more than 90% with Superb trading ideas.Most Successful Intraday Stock Future Calls Provider Service Indian Share Market.

Website http://www.narendranainani.blogspot.com

Bullet Advice For Indian Stocks Weekly –market gives thumps up to union budget BSE Sensex (16429.55) and Nifty (4922.30) closed up by 1.5% and 2.4% respectively last week.Nifty Future March was quoting at 8.05 points premium.Nifty Call Option March 5000 was very active.Support for Sensex is at 16175. Resistance for Sensex is at 16675 .Support for Nifty is at 4840 and resistance at 5000. Projection of lower fiscal deficit as a percentage of GDP in the coming years by Finance Minister during presentation of union budget helped to revive the sentiment in stock market..Stock Market will remain closed on 1st March 2010 on account of Holi. Reliance Capital and SBI added Open Interest in March series.Huge position was build up at IFCI March Call Option Strike Price 50.Good build up was also seen at State Bank Of India March Call Option Strike Price 2000. Strategy for Futures Option players. 1)Hindalco(162.65) Lot Size-3518 Shares Buy One Call Option of March Strike Price 160@ 7.85 Rs Sell One Call Option of March Strike Price 170@3.60 Rs. Premium .Paid=7.85*3518= 27616.30 Rs. Premium Received=3.60*3518= 12664.80 Rs. Net Premium Paid==27616.30-12664.80=14951.50 Rs. Maximum Profit==170-160==10*3518=35180-14951.50=20228.50Rs. Maximum Loss= 14951.50 Rs. Break Even Price=164.25 2)ICICI Bank(868.55) March Future-Lot Size 350 shares. Buy One Lot March Future @868.55 Sell One Call Option of March Strike Price 880@11.45 Rs. Premium Received=25.55*350= 8942.50 Rs Maximum Profit=880-868.55=11.45*350=4007.50+8942.50=12950.00 Rs. Max Loss=Unlimited. Trend of Major Stocks STOCK TREND Days WeeklyTrend MonthlyTrend BHEL.NS Bearish 1 Rising Falling ICICIBANK.NS Bulllish 2 Flat! Flat! INFOSYSTC.NS Neutral 1 Rising Falling ITC.NS Bearish 3 Flat! Flat! MARUTI.NS Bulllish 3 Rising Falling SBIN.NS Bulllish 1 Flat! Flat! TATASTEEL.NS Bulllish 1 Flat! Flat! TCS.NS Bearish 1 Flat! Flat! 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 2349.3 62.42 48.47 21.46 ICICIBANK.NS 872.15 61.15 60.47 13.3 INFOSYSTC.NS 2601.95 56.22 59.7 18.41 ITC.NS 232.25 21.13 30.02 18.83 MARUTI.NS 1459.95 48.98 60.62 28.79 SBIN.NS 1974.3 43.73 47.96 31.97 TATASTEEL.NS 574.35 55.67 49.98 21.47 TCS.NS 761.8 57.09 56.17 9.72 Trading Idea 1)Dena Bank(80.65)Buy this stock in decline and trade. 2)Reliance Capital(786.45) Buy this stock in decline and trade By Bullet Advisory Indian Stocks-India’s Top Most No.1 Best Stock Market Advice Blog,Hot Stock Tips Calls by Expert Technical Analyst Narendra Nainani of India.Most Preferred and Successful Paid Subscription Stock Tips Calls Website of India.Excellent Success Ratio of more than 90% with Superb trading ideas.Most Successful Intraday Stock Future Calls Provider Service Indian Share Market. -+919898162770 Website twitter.com/narendranainani. Website facebook.com/pages/AhmedabadGujaratIndia/Bullet-Advice-For-Indian-Stocks/140925199054.

   Federal Reserve slashed the interest rates to target 0.25% to 0%..It is to fight deflation or  recession. It was the trump card used to revive economy.Free money supply can create demand and increase the consumption.It can help sinking economy.But can it have kick start  effect to the problem and place economy on the fast track.The answer is no.It can do no miracles in short run.Free money supply can boost the demand not the confidence.Investors will not invest money somewhere because they get it at free interest rate.Investors look for returns.One will invest only if he is confident of making money on investment not just because it’s free money.Borrower has to pay the principle amout back if not interest.Nobody will take a risk of investing particularly if there is going to be a depreciation of invested asset.People will look for surety and would not like to take the unnecessary risk unless and until confidence revives.Fed and U.S.Government have to be prepared to take more actions on SOS basis and be ready with alternative plans as interest rate trump card has been already used.Restoring investors confidence is the need of hour.

Traders were cautious and tried to book profits.they expect something more has to be done to kick start the economy.Depriciating dollar will only help commodities prices and emerging markets.Wait and watch was the policy before jumping on to the bandwagon.Redumption pressure in January are also feared by them.Emerging market Government are also expected to cut the interest rates further to catch up with Fed

BSE Sensex (8674.35) and Nifty (2678.55) closed 7.0% and 9.9% down  respectively last week.Nifty put-call ratio was 0.81.Support for Sensex is at 8200 and for Nifty 2530.Resistance for Sensex is at 9100 and Nifty is at 2800. Inflation was at 5.60 v/s 5.24 last week.Crude oil was at 42$.Educom  saw  panic selling on the false rumors of accounting scam during the week.Vodafone was asked by Supreme Court to approach I.T. Department for juridiction.Deutsche Bank sold 3.38 million shares of Satyam while L & T acquired 8% stake.SEBI petition to question Ramalinga Raju of Satyam was dismissed  by the court.FIIs’ have turned net sellers after the shock of Satyam scam..Nifty 2700 call option  added open interest.Satyam  and DLF  added open interest. SAIL and ICICI Bank shaded open interest. Huge position was build up at Reliance Industries January put option strike price 1140 and NTPC January call option strike price 180.

Tactics for Future Option players.

  1)Satyam Computers(38.85) Lot Size-600 Shares

   Buy one call option of February  strike price 35@6.85 Rs.

   Sell one call option of February strike price 40@4.30   Rs.

   Premium .Paid=6.85*600=4110.00 Rs.

   Premium Received=4.30*600=2580.00 Rs.

   Net Premium Paid=4110.00-2580.00=1530.00 Rs.

   Maximum Profit=40-35=5*600=3000.00-1530.00=1470.00 Rs.

   Maximum Loss=1530.00 Rs.

   Break-even=37.55  Rs.

2)Reliance Industries(1160) February future-Lot Size 75 shares.

    Buy one lot  February future @1160.00

    Sell  one call option of  Februay strike price 1260@40.00 Rs.

    Premium Received=40*75=3000.00  Rs.

    Max Profit==1260-1160=100*75=7500.00+3000=10500.00 Rs.

    Max loss=Unlimited.

Trading Idea

1)TataTea(622.10)Buy this stock in decline and trade.    

2)Titan(919.40)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

ICICIBANK.NS         Bearish 12        Falling  Rising  

INFOSYSTC.NS        Bearish 5          Rising   Falling 

ITC.NS                        Neutral             2          Falling  Rising  

MARUTI.NS               Bearish 5          Falling  Rising  

SATYAMCOM.NS    Bulllish  6          Rising   Falling 

SBIN.NS                     Bearish 6          Falling  Rising  

TATASTEEL.NS         Bearish 4          Falling  Rising  

TCS.NS                       Bearish 7          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         363.85    45.86 38.22  18.36

INFOSYSTC.NS        1204.65 64.34 49.73  19

ITC.NS                        170.4     50.22 48.94   10.86

MARUTI.NS               515.2   66.92   40.39   20.9

SATYAMCOM.NS    38.85   48.86   30.41   55.06

SBIN.NS                     1041.5 39.73   32.04   26.65

TATASTEEL.NS         166.3   40.48   33.57   19.58

TCS.NS                       486.15 42.14   43.88   11.3

Website narendranainani.blogspot.com.

BSE Sensex (9958.22) and Nifty (3046.75) closed 6.7% and 6.6% up respectively last week.Nifty put-call ratio was 1.11. Support for Sensex is at 9390 and for Nifty 2880.Resistance for Sensex is at 10630 and Nifty is at 3240 Support for Sensex is at 9390 and for Nifty 2880.Resistance for Sensex is at 10630 and Nifty is at 3240 Inflation was at 6.38 v/s 6.61 last week. Crude oil was at 42$..Market gained ground on the hope the  of second stimulus package announcement which was ultimately declared after market hours on Friday. Reserve Bank Of India also reduced Cash Reserve  Ratio by 50 basis points to 5% and Reverse Repo Rate by 100 basis point to 4% on Friday evening which will release 20,000 Cr into the system. Impact of deepening global crisis led RBI to cut the rates to avert downside risk to economy. In second stimulus package ceiling of External Commercial Borrowing was removed and FII investment limit in corporate bonds was increased from $6 billion to $15 billion. CVD was reduced in cement, depreciation for commercial vehicle was increased to 50% till March,2009.NBFC ‘S limits were increased and public sector  banks were given enhanced credit targets. DEPB scheme was extended till 31st December 2009. Satyam was in the limelight after three independent directors had resigned and recovered from lows. Reliance Industries also went up smartly inspite of S & P cutting co’s rating outlook from stable to negative. Small buying from FII was visible. .Nifty 3200  call option  added open interest. RNRL and Unitech added open interest. Satyam and Renuka Sugar  shaded open interest. Huge position was build up at Satyam January put option strike price 170 and RNRL January call option strike price 70.

Tacticsfor Future Option players.

  1)ICICI Bank(471.25) Lot Size-175 Shares

   Buy one call option of January  strike 450@46.50 Rs.

   Sell one call option of January strike price 500@21.50   Rs.

   Premium .Paid=46.50*175=8137.50 Rs.

   Premium Received=21.50*175=3762.50 Rs.

   Net Premium Paid=8137.50-3762.50=4375.00 Rs.

   Maximum Profit=500-450=50*175=8750.00-4375.00=4375.00 Rs.

   Maximum Loss=4375.00 Rs.

   Break-even=475.00  Rs.

2)Nagarjuna Fertilizer(18.20) January  future-Lot Size 3500 shares.

    Buy one lot  January future @18.20

    Sell  one call option of  January strike price 20@0.90 Rs.

    Premium Received=0.90*3500=3150.00  Rs.

    Max Profit==20.00-18.20=1.80*3500=6300.00+3150.00=9450.00 Rs.

    Max loss=Unlimited.

Trading Idea

1)Reliance Capital(567.85)Buy this stock in decline and trade. 

2)JPHydro(32.10)Buy this stock in decline and trade.

Trend of Major Stocks

            STOCK          TREND        Days  WeeklyTrend  MonthlyTrend

ICICIBANK.NS         Bulllish  2          Rising            Rising

INFOSYSTC.NS        Neutral 1          Rising              Falling

ITC.NS                        Bulllish  1          Rising            Rising

MARUTI.NS               Bulllish  4          Rising              Rising

SATYAMCOM.NS    Bulllish  5          Rising              Falling

SBIN.NS                     Bulllish  2          Rising              Rising

TATASTEEL.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         471.25          76.1        60.95   20.68

            INFOSYSTC.NS        1132.1          66.16      44.4     15.87

            ITC.NS                        174.5            51.15      52.72   9.39

            MARUTI.NS               544.4            71.83      54.58   26.01

            SATYAMCOM.NS    177.2            42.67      43.02   41.96

            SBIN.NS                     1331.85        76.32      60.84   15.73

            TATASTEEL.NS         229.6            62.94      58.85   19.03

            TCS.NS                       498.3            43.18      48.46   11.92

BSE Sensex (9406.47) and Nifty (2847) closed 5.5% and 5.7% down  respectively last week.Nifty put-call ratio was 1.12.Support for Sensex is at 8500 and for Nifty 2607.Resistance for Sensex is at 10165 and Nifty is at 3075. Inflation was at 5.91 v/s 6.38 last week.Crude oil was at 42$.Market lost ground after Ramalinga Raju Chairperson of Satyam Computer resigned and confessed the fraud amounting  7000 Cr.FIIs’ like Morgan Stanley,UBS AG,Fidelity and Aberdeen were disappointed and exited from the counter at market price.SEBI summonsed Mr.Raju in late afternoon for inquiry and he surrendered himself to AP police in the evening. .Nifty 2900 put option  added open interest. Jaiprakash associates and Unitech added open interest. ICICI Bank and Satyam shaded open interest. Huge position was build up at Unitech January call option strike price 40 and RNRL January call option strike price 60.

Tacticsfor Future Option players.

  1)UNITECH(36) Lot Size-900 Shares

   Buy one call option of January  strike price 35@5.15 Rs.

   Sell one call option of January strike price 40@4.15   Rs.

   Premium .Paid=5.15*900=4635.00 Rs.

   Premium Received=4.15*900=3735.00 Rs.

   Net Premium Paid=4635.00-3735.00=900.00 Rs.

   Maximum Profit=40-35=5*900=4500.00-900.00=3600.00 Rs.

   Maximum Loss=900.00 Rs.

   Break-even=36  Rs.

2)NTPC(175.50) January  future-Lot Size 1625 shares.

    Buy one lot  January future @175.50

    Sell  one call option of  January strike price 180@5.10 Rs.

    Premium Received=5.10*1625=8287.50  Rs.

    Max Profit==180.00-175.50=4.50*1625=7312.50+8287.50=15600.00 Rs.

    Max loss=Unlimited.

Trading Idea

1)BPCL(380.65)Buy this stock in decline and trade.      

2)TCS(536.95)Buy this stock in decline and trade.

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

ICICIBANK.NS         Bearish  2  Rising          Rising  

INFOSYSTC.NS        Bulllish  4  Rising           Falling 

ITC.NS                        Bearish   2  Falling        Rising  

MARUTI.NS              Bulllish    8  Rising          Rising  

SATYAMCOM.NS    Bearish   2  Falling        Falling 

SBIN.NS                     Bearish   3  Falling        Rising  

TATASTEEL.NS         Bearish   2  Rising         Rising  

TCS.NS                       Bulllish  1   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         456.6   61.59   53.28   23.59

INFOSYSTC.NS        1203.4 79.09   55.34   13.83

ITC.NS                       169.65  44.88   46.4     11.67

MARUTI.NS               585.85 70.64   63.67   20.76

SATYAMCOM.NS    23.75   31.33   20.43   44.36

SBIN.NS                     1221.1 60.58   46.3     15.93

TATASTEEL.NS         215      49.36   48.06   19.65

TCS.NS                       536.95 45.65   58.36   10.94

Website narendranainani.blogspot.com.

BSE Sensex (9424.24) and Nifty (2874.80) closed 8.6% and 7.3% up respectively last week.Nifty put-call ratio was 1.21.Support for Sensex is at 9000 and Nifty at 2740.Resistance for Sensex is at 9860 and Nifty at 3000.Inflation was at 5.64 v/s 5.60 last week. Crude oil was at 42$.Markets soar up from oversold territory on the news of $819 billion stimulus package being passed by U.S.House of Representatives. L&T expressed their interest to buy Satyam to Government of India. Fiedility bought 1.71 Cr. shares of Satyam from the open market. IMF reduced the growth forecast of India to 5.1% from 6.3% in 2009 .Government announced the price cut of petrol and diesel by five Rs and two Rs. respectively. Reliance Industries got interim order from Bombay high court to sell KG Basin gas till final  judgement which is expected by mid March. .Nifty 2700 put option added open interest. SAIL  and RPL  added open interest. SBI and HPCL shaded open interest. Huge position was build up at BHEL February put option strike price 1290 and L&T February call option strike price 680.

Tactics for Future Option players.

1)Hindalco(48.95) Lot Size-1759 Shares

   Buy one call option of February  strike price 50@3.85 Rs.

   Sell one call option of February strike price 55@2.00   Rs.

   Premium .Paid=3.85*1759=6772.15 Rs.

   Premium Received=2*1759=3518.00 Rs.

   Net Premium Paid=6772.15-3518=3254.15 Rs.

   Maximum Profit=55-50=5*1759=8795-3254.15=5540.85 Rs.

   Maximum Loss=3254.15 Rs.

   Break-even=51.85  Rs.

2)Petronet(37.35) February future-Lot Size 2200 shares.

    Buy one lot  February future @37.35

    Sell  one call option of  Februay strike price 40@1.90 Rs.

    Premium Received=1.90*2200=4180.00  Rs.

    Max Profit==40-37.35=2.65*2200=5830.00+4180.00=10010.00 Rs.

    Max loss=Unlimited.

Trading Idea

1)MARUTI(568.30)Buy this stock in decline and trade. 

2)BPCL(391.95)Buy this stock in decline and trade.                      

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

BHEL.NS             Bearish        2          Falling  Rising              

ICICIBANK.NS  Bulllish         4          Rising   Rising              

INFOSYSTC.NS Bulllish         4          Rising   Falling             

ITC.NS                 Bulllish         4          Rising   Rising              

MARUTI.NS        Bulllish         2          Rising   Rising              

SBIN.NS              Bulllish         4          Rising   Rising              

TATASTEEL.NS Bulllish         3          Rising   Rising              

TCS.NS                Bulllish         4          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            1320.8         46.85   44.43   12.26

ICICIBANK.NS 416.25         46.88   50.06   17.28

INFOSYSTC.NS 1306.65      69.32   61.52   22.13

ITC.NS                 180.1          66.4     63.01   12.11

MARUTI.NS        568.30       75.86    55.16   20.07

SBIN.NS              1151           48.65   47.82   28.48

TATASTEEL.NS 184.6           57.04   43.03   21.96

TCS.NS                 511.6         54.13   52.31   10.09

BSE Sensex (9300.86) and Nifty (2843.10) closed 1.3% and 1.1% down respectively last week. Nifty put call ratio was 1.00..Sensex support is at 9100. Sensex resistance is at 9570. Nifty support is at 2770. Nifty resistance is at 2940.Inflation was at 5.07v/s 5.64 last week. Crude oil was at 40$.. Former Global Business Head of Satyam Mr. A.S.Murty was appointed as new CEO of the company. Mr. Kiran Karnik was appointed as chairperson of Satyam by the Government. It is feared that Ramalingaya Raju’s family may loose the control of Maytas as IL&FS has requested the Government to appoint their nominees on the board. Interim union budget will be presented by the Government on 16th February 2009.Announcement of some tax relief is expected. Third stimulus package is to be declared before the month end which may contain some soaps for infrastructure and export related sectors. Markets are also keenly waiting for the major stimulus package to be declared by U.S. Government for reviving the banking sector. Nifty February 2700 put option added open interest Reliance Industries and TCS added open interest. SBI and Infosys shaded open interest. Huge position was build up at TTML February call option strike price 25 and ICICI Bank February call option strike price 400.Surprisingly Nifty March 2200 put option is adding continuous open interest.

Tactics for Future Option players.

1)Chambal Fertilizers(39.80) Lot Size-3450 Shares

   Buy one call option of February  strike price 40@2.80 Rs.

   Sell one call option of February strike price 45@1.35   Rs.

   Premium .Paid=2.80*3450=9660.00 Rs.

   Premium Received=1.35*3450=4657.50 Rs.

   Net Premium Paid=9660.00-4657.50=5002.50 Rs.

   Maximum Profit=45-40=5*3450=17250.00-5002.50=12247.50 Rs.

   Maximum Loss=5002.50 Rs.

   Break-even=41.45  Rs.

2)AshokLeyland(15) February future-Lot Size 4775 shares.

    Buy one lot  February future @15.00

    Sell  one call option of  Februay strike price 15@0.85 Rs.

    Premium Received=0.85*4775=4058.75  Rs.

    Max Profit==4058.75 Rs.

    Max loss=Unlimited.

Trading Idea

1)Century Textiles(164.95)Buy this stock in decline and trade. 

2)DR.Reddy(458.90)Buy this stock in decline and trade.                

Trend of Major Stocks

STOCK TREND Days  WeeklyTrend  MonthlyTrend

BHEL.NS             Bulllish         4          Rising   Rising  

ICICIBANK.NS  Bulllish         1          Falling  Rising  

INFOSYSTC.NS Neutral        2          Rising   Rising  

ITC.NS                 Neutral        1          Rising   Rising  

MARUTI.NS        Bearish        1          Rising   Rising  

SBIN.NS              Bulllish         1          Falling  Rising  

TATASTEEL.NS  Bulllish        3          Rising   Rising  

TCS.NS                Bulllish         1          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                  1365.55  35.54  50.26   14.07

ICICIBANK.NS         407.1   36.98  49.73   15.52

INFOSYSTC.NS      1288.9   61.5    58.39   21.95

ITC.NS                      182.55   61.92   61.86   19.41

MARUTI.NS             577.7     71.64   54.65   15.74

SBIN.NS                   1118.6   41.75   46.4     27.45

TATASTEEL.NS      186.5      46.67   46.61   21.64

TCS.NS                      502.8    49.73   50.11   10.33

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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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