Trading Strategy for 21 May 2013 , Tuesday

Buy Dish TV Call Option Strike Price 70 around 1.75 - 2 for the target of 4 - 4.5 by Thursday

Buy WIPRO Call Option Strike 350 around 6-7 for target of 10 - 12 by Friday

Buy Canara Bank Put Option Strike Price 430 around 6-7 for target of 17-18 by next week

Where is Indian Stock Market heading next week April 8, 2013, Momday

The Indian Stock market both NSE and BSE has very bad session this week with markets falling more than 2% and many stocks have fallen five to ten percent. The global market especially European markets have been beaten sharply. And on Friday European stocks DAX, CAC and FTSE were down more than two percent but US market recovered from their days low and closed almost flat. Which shows that US is in the mode of progression and Dow and Nasdaq will move higher in days to come.

So what we can conclude from this. Our own Indian Stock market , shall see gap down opening on Monday and will recover from days low and for the week we can see market moving up around 2-3%.

So what stock should be on our radar. Q4 Result will start flowing from next week.

Buy Hind Uni Lvr ( HUL ) ( Cmp 470 ) for the target of 490 next week.

Sell HCL Tech For target of 720  Cmp 758

Buy R Com for target of 72 Cmp 63

Buy dish Tv for target of 77 Cmp 70

Sell Hexware for target of 87 Cmp 91

Futures and Options Call for April 2013

1. Buy WIPRO 440 PE around 12 for the target of 18-20 in two three days.
2. Buy R Com PE 55 aruond 3 for target of 4.5 to 5 in two three days.
3. Buy Maruti 1250 PE around 35 for target of 70 in coming one week.
4. Buy HindUniLvr Call 480 around 8 for target of 11-12 in three to four days.

Buy Hindustan Unilever for target of 480 by month end

Only only long term investors as well as short term traders should buy the stock of Hindustan Unilever cmp 450 for the target of 480 by end of February 2013.

The stock is fundamentally one of the strongest from the Nifty 50 stock. Hindunilvr is already down more than 10% from its recent high of 500. In six to nine months one can see the levels of 650 in Hindustan Unilever and by ear end around 750.

Short term traders should by the Call Option of strike price of 460 around 8 - 10 levels and sell around 16-18 levels in one to two week time.

Short IRB Infra for Target of 105

Short Term Traders should Short IRB Infra (cmp 115) for the target of 105 in coming week.

• The budget has not given any clear roadmap for the infrascturcture which spells negative for the stocks like IRB
• Other peer group stocks like RelInfra has falled much higher than IRB which means IRB will hit lower targets before setteling down
• There has been a persistent problem with their toll booths across Maharastra state, the toll collection has been regularly vandalised which pegs downs its revenue collection.
• IRB is more of a trading stock now , as deliverly volumes have been very low between 20-25% in last one week.

Small time traders should buy the PUT option of IRB for March with strike price of 110 between 4 to 4.5 and sell around 7-8 in coming days.

Buy Hexaware in Hedge Options Manner before

Traders and short term profit makers should buy the Hedging Option of Hexware on Monday 11 Feb 2013 before the announcement of its Dec Qtr results.

Buy 85 Call @ cmp 3.70 and 80 Put @ 3.30

Hence total cost of Investment = 7 * 2000 ( Lot Size of Hexware ) = 14,000

In the even of very good or bad result the stock will move upward or downward of more than or around 5% , hence the chances of gain are explained below.

Good Result stock moving up 5% = 86 Cost of Call likely 7 and cost of Put likely 2, Hence total selling cost = 9*2000 = 18,000, Therefore a gain of 4000/-.

Viceversa in case of a bad result and stock moving down of around 5%.

The above calculation has been taken on very conservative basis the are likely to be much higher.

Buy HDIL Call Feb Series CE and PE

Option traders should buy HDIL CA FEB Strike Price 90 and PE 80 the total cost of investment should not cross Rs 6 i.e. 24,000/-

There is high chance that HDIL will move above 100 in coming week or if some adverse things happen it may move below 70 in both cases the gain will be 16,000 Plus

Example :- HDIL Crossing 100 CA Price 10 plus selling cost = 40,000 PE may be 1 then PE selling price 4000 total value received 44,000.  Cost incurred 24,000 gain = 20,000/-

HDIL Crossing below 80. Value of PE 10 plus = 40,000 CA may be 1 = 4000. Hence gain of 20,000/-.

Buy SKS Microfinance for the target of

Both short term and long term traders and investors should start buying SKS Microfinance. The balance sheet position of the stock is showing excellent improvement and all the government dangers relating to interest rates of MFI s have cleared. The stock will see a very good upmove in coming months. Also the FIIs  have drastically increased their stake in the company.

Buy at CMP of 184 for the stort term target of 208 and long term 3-6 month target of 307.

Buy Stride Arcolab for target of

Position can be taken in Stride Arcolab for the target of 1250 in very short time may be a week or two. As paharma shares have seen a huge run up and the uptrend is likely to be continued for coming days. Also the earning results are schedule to come from next week, the prices of defensives in pharma will see a good jump.

 At present CMP of 1071 we recommend a buy on Stride Arcolab for a target of 1250 in very short term and long term 3-6 month target of 1475.

Buy Maruti Call Option Jan Series for Target of

Short term traders can buy the Call Option of Maruti strike Price of 1600 for series expiring 31 JAN 13.

Buy around 19-22 for the target of 28-30 in two or three days.

If market suddenly falls then exit around 15-18 and agin reenter at lower levels of 12.

Risk involved in one lot of 250 is 1250 and gain chances at lower degree of risk is 2500 or even more.