Trading opportunities in Nifty !!!

Hi,
Nifty traded weak as expected and went down to even below the 5725 mark to close at 5651 on friday. We now look for a bounce from the current levels upto 5760-5800 and then go short again for downward target of 5650 and 5525-5500. Charts below show the probable path of Nifty in the next sessions. Please trade with caution as we have just 3 days left for Nifty expiry. Tuesday, 27th Mar is holi day and 29th Mar is holiday (Good Friday).

ALLAHABAD BANK comes in the demand zone of 115-125...so look for buying opportunity on every dip. Target is 140-150, stop loss will be at 109.


TCS seems to be getting weaker, fridays close was at 1542. If it goes back to 1575 region then short it with target of 1500-1445 keeping stop loss of 1590.

Markets next likely move !!!

We have the RBI policy review coming up on 19th Mar. So it is better we study the market sentiment and be ready to capitalize the next SENTIMENTAL move of Nifty & one of the banking stocks ALLAHABAD BANK.....enjoy!!!

NIFTY DAILY CHART

Swing trading signals on charts

Date: 24-Feb-2013
You will find some swing trading signals generated based on Supply & Demand Zones.

Enjoy!

Trading Plan for 22-Feb-2013

NHPC: CMP = 28.65, looks weak at 29 levels and may give good opportunity to short if it trades weaker around 28.75 level, keeping a stop loss of 29.35 one can short it for a near term target of 28 and 26.50

TCS: CMP = 1450, seems to be struggling to break its 1450-1455 resistance zone. Option data also suggests fresh positions building up in the 1400 PE of Feb & Mar series. Also we see the same kind of activity on the 1450 CE in Feb series. This suggests that CALL traders are writing the 1450 CALL in anticipation of TCS correcting upto 1400 in near term.
Charts suggests that if TCS pulls back from 1450 then it will most likely reach 1350.

Recommendation :
Sell only if TCS trades below yesterdays candle low (i.e. 1440), best shorting opportunity is at 1455-1458 keeping a stop loss of 1462 for a target if 1440-1400

Sell TCS Feb 1450 CE @ 18.00 (lot size = 250)
Option Margin required to short = 72500
Max profit = 18 X 250 = 4500

However if TCS climbs 1462 then it is likely to go upto 1500.

Happy Trading! 


Lawrence Sequeira

Trading Plan for Feb-2013

Dt:07-Feb-13

JP Associates should take a pause from falling between 70-65. cmp=73.40, mkt lot=4000
ditm pe of 80-85 are seeing unwinding of their positions as volms are high and open int is falling though price is increasing. from the volms we get to see that many ditm traders are already booking their profits.
simple example is ....
ditm 65 ce volm is 2 and open int change for the day is 8000 and ( price change was -3.40) cmp = 9.40
whereas ditm 80 pe volm is 184 and open int change for the day is 8000 and ( price change was 1.75) cmp = 7.85




Kotakbank is at 52 week high, cmp=696, mkt lot=500
Highest open int is seen at 700 ce, volm=223 and chng in opn int=23,000 (total open int=41,000)
680 ce also saw additions in open int with volm=84 and chng in opn int=19,500 (total opn int=39,000) that means previous day the open int in 680 ce and 700 ce was something like this
680 ce = total open int = 39000-19500=19500
700 ce = total open int = 41000-23000=18000
so till prev day 680-700 would hv been looked as resistance.
also interesting thing to note on the pe side is that the 740 pe has added open int from 0 to 12,000 in a single day with volm=24, now why will traders open new positions in ditm pe of 740, do they expect price correcting sharply from here on ? cmp of 740 pe = 50.00
secondly volms of 680 pe were 75 but chng in open int was 20,000 which is almost equal to the chng in open int of 700 ce (with higher volms=223 though), so what does that mean ? are pe being sold or bought ?
at this juncture the safe bet seems to be 'bear call' strategy:
sell 700 ce @ 13 and buy 720 ce @ 6.60 locking in 6.4X500=3,200 profit on investment of 73500/- (70K for margin and 3500 for buying 720 ce). this will give roi% of 4.35%



Happy Trading !!!

Trading Plan for last day of year 2012

Hi Friends,
We achieved a high level of accuracy with our trades as you can see that more than 95% of them listed here, during this past year of 2012, were on target.
Hope your trades were good.

I have now decided to change my trading plan in terms of overall market analysis. I have finalized 13 stocks - which I am going to trade for the most part of 2013. These are the stocks which control more than 65% of index, both Sensex & Nifty, so why waste time with other 37 when we can get good results from these 13 stocks.

The plan which I am posting here is for the week of  31-Dec-12 to 4-Jan-13 only.

STOCKS WITH  +VE BIAS:-> LOOK FOR BUYING OPPORTUNITY
1. TCS
2. RELIANCE
3. ONGC
4. INFOSYS
5. HINDUNILVR

STOCKS WITH  -VE BIAS:-> LOOK FOR SHORTING OPPORTUNITY
1. TATAMOTORS
2. M&M
3. LT

Apart from the 8 stocks listed above, the rest of the stocks are likely to remain choppy so avoid trading them.

Happy Trading & I wish you & your family a Very Happy New Year 2013.

Options Trading Plan for Near Term

Options Trading Plan for Dec-2012

BHEL: cmp = 221, Mkt lot= 1000
Buy BHEL 220 CE Jan @11.00 X 1 lot = 11.00 ,  tgt 30, stop loss 5.00
hedge by buying BHEL 210 PE JAN @4.00 X 3 lots = 12.00, tgt 10, stop loss 1.5
expected profit 30-11-12= 7
ROI = 7/23 = 30%

NMDC: cmp = 163, Mkt lot=2000
Buy NMDC 160 CE Jan @8.50 X 1 lot = 8.50, tgt 25, stop loss 3.50
hedge by buying NMDC 160 PE Jan @3.00 X 3 lots = 9.00, tgt 10.00, stop loss 1.00
expected profit = 25-8.50-9 =7.50
ROI=7.50/17.50 = 42.85%

IRB: cmp = 129, Mkt lot=2000
Buy IRB 120 CE Jan @7.00 X 1 lot = 7.00, tgt 18.00, stop loss 2.50
hedge by buying IRB 110 PE Jan @4.00 X 2 lots = 8.00, tgt 10.00, stop loss 1.50
expected profit = 18-7-8 =3
ROI=3/15 = 20%