Don’t wait for Sensex to hit 21000. Buy stocks NOW If you want to buy into the stock markets don’t wait for tomorrow. The right time to buy stocks is NOW. And here’s why… Read more on rediff.com

BSE Sensex (8965.20) and Nifty (2714.40) closed 1.4% and 1.5%  down last week.Nifty put-call ratio was 0.77.Support for Sensex is 8520 and for Nifty 2580.Resistance for Sensex is 9380 and Nifty is at 2840.Inflation was also under control 8.40 v/s 8.84 last week.Crude oil was at 43$.Market recovered from low levels on hopes of Repo and Reverse Repo cut by Reserve Bank Of India.Positive statement by Mr. Subbarao, Governer Reserve Bank Of India that fundamentals of Indian economy are strong and have minimal impact of global meltdown. prevented free fall in the market .Easing liquidity since mid November and steps to stimulate the economy some measures will be taken on Saturday 6th December also lended some support to the market.Late Friday evening Government reduced the price of petrol by 5 Rs/litre and diesel by 2 Rs/litre following reduced crude prices in international markets.NSE has announced to increase the lot sizes of Future & Option Stocks since value of most stocks has reduced drastically.DEFTY will also strat trading in the month of December which will help liquidity and increase the volumes.DEFTY is a NIFTY in Dollar term which will help FII’s to hedge NIFTY  in dollar term. Selling of FII was visible..Nifty 2600 put added open interest.Tata Motors   and  ONGC   added open interest.Reliance and L&T lost open interest.

Strategy for Future Option players.

Future Option na kheladio mate

1)RPL(72.50)  Lot Size-1675 Shares.

   Buy one call option of December month strike price 70@5.45 Rs.

   Sell  one call option of December month strike price 75@3.00 Rs.

   Premium Paid=5.45*1675=9128.75 Rs.

   Premium Received=3*1675=5025.00 Rs.

   Net Premium Paid=9128.75-5025.00=4103.75 Rs.

   Maximum Profit=75-70=5*1675=8375.00-4103.75=4271.25 Rs.

   Maximum Loss=4103.75 Rs.

   Break-even=72.45 Rs.

2)MTNL(73.55) December  month future-Lot Size 1600 shares.

    Buy one lot  December month future@73.55

    Sell  one call option of  December month strike price 80@1.55 Rs.

    Premium Received=1.55*1600=2480.00 Rs.

    Max Profit=80-73.55=6.45*1600=10320.00+2480.00=12800.00  Rs.

    Max loss=Unlimited.

Trading Idea

1)ACC(427.05)Buy this stock in decline and trade.

2)ESCORTS(32.85)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          Bearish 1          Rising   Falling

               ITC.NS                    Bearish              1          Rising   Rising

            MARUTI.NS               Bulllish  3          Falling  Falling

         SATYAMCOM.NS       Bearish 1          Rising   Falling

        SBIN.NS                         Bulllish  3          Rising   Rising

        TATASTEEL.NS Bulllish  3          Rising   Rising

          TCS.NS                         Bearish 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         358.4               41.72   46.3     18.38

INFOSYSTC.NS        1134.5             39.17   39.58   23.7

ITC.NS                       169.35             48.18   50.12   16.24      

MARUTI.NS              490.65              40.94   38.55   32.48

SATYAMCOM.NS    225.15             35.96   36.92   31.46

SBIN.NS                   1134.15             28.43   46.85   26.71

TATASTEEL.NS         182.5               40.93   45.51   31.86

TCS.NS                        521.8              52.62   47.3     15.66

Website narendranainani.blogspot.com.

Can’t wait indefinitely on pipeline project: Iran
NEW DELHI: Iran on Tuesday hoped that India would join the Iran-Pakistan-India (IPI) pipeline project soon, but pointed out that there should be “some limit” to the time being taken to arrive at a decision.

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